Samsung might not stop making LCD panels anytime soon after all. According to South Korean publication IT Chosun, the company will continue producing LCD screens for TVs and monitors for at least one more year.
Samsung Display, the Korean giant’s display manufacturing arm, had originally planned to shut down the LCD business by the end of this year. However, the company later postponed the plans until March 2021 after seeing a sharp rise in demand for LCD panels during the COVID-19 pandemic.
Samsung announced last month that it will continue the production of LCD panels at its L8 fab in the Asan plant for at least three more months. Now, it has announced a year-long extension of that plan. Apparently, Samsung Electronics has requested Samsung Display to make the latest extension.
“There was a request for Samsung Electronics to extend LCD production for another year, and I know that Samsung Display has virtually decided to accept it,” the report cites an unnamed source in the electronics industry as saying (roughly translated from Korean).
This extended production run reportedly will not contribute to the profits of Samsung Display. It currently makes LCD panels only at its Asan plant in South Korea. The company has already sold its Suzhou plant in China to CSOT (China Star Optoelectronics Technology).
However, Samsung Electronics is likely to benefit from using its in-house panels in its TVs and monitors. The company initially planned to source LCD panels for mini LED TVs from Chinese suppliers. But it has now turned towards its sister firm Samsung Display, and the latter didn’t back off.
Samsung to continue making LCD panels for at least one more year
The demand for LCD panels is expected to continue to rise next year as the still-ongoing global health crisis forces more people to work, learn, and entertain from home. According to LCD market research firm WitsView, prices of LCD screens have soared up to 80 percent since the pandemic.
This price rise may continue throughout next year as the demand for laptops, monitors, and TVs increases. And for as long as this trend continues, Samsung is unlikely to stop making LCD panels. So it shouldn’t be surprising to see the Korean company still making LCD panels in 2022 as well.
“It is likely that discussions on the extension of LCD production with Samsung Display will proceed on an annual basis. The extension period will be decided by considering the company’s profits as well as the LCD market situation. It is difficult to specify the timing just yet,” a Samsung Electronics official said (roughly translated from Korean).”