In March 2020, Samsung announced plans to stop the production of all LCD panels by the end of the year. The company even started preparing for the shutdown in August, reassigning some Samsung Display employees to its other divisions. Fast forward to May 2021, the Korean firm seemingly has no plans to exit the LCD business anytime soon.
According to Korean publication The Elec, Samsung Display will continue to make LCD panels for the foreseeable future. Samsung Electronics reportedly requested its display division to continue operating its LCD manufacturing plants, keeping in view the growing demand for monitors and TVs during the ongoing COVID-19 pandemic, as more people are now working, learning, and entertaining from home.
The increased demand induced a price rise for LCD panels last June and it hasn’t stopped yet. Samsung initially postponed its plans to shut down the LCD business From December 2020 to March 2021. However, since the demand hasn’t slowed down, the company now wants to stay in the business for the time being.
If Samsung Display stopped making LCD panels, Samsung Electronics will have to source them from other suppliers such as LG and China’s BOE, which may not be the best option when there’s a price rise. As such, Samsung Display CEO Joo-sun Choi has sent an email to executives confirming the company is considering extending operations at its LCD manufacturing units until the end of next year.
“We are considering a plan to continue LCD production until next year, considering the company’s profits first and reflecting the market conditions,” a Samsung Display official told The Elec.
Samsung Display may continue making LCD panels until the end of next year
Samsung has already shut down some of its LCD manufacturing plants. The company has also sold one of its lines to China’s CSOT. Moreover, it was preparing to shut down some other lines as well. But with the recent developments, it may not do so just yet.
Samsung Display will reportedly take a decision on whether to continue making LCD panels by the end of this month. However, it is unlikely to decide against it. After all, this move will also allow Samsung Electronics to bargain with its other suppliers such as BOE and CSOT. The two Chinese suppliers generally offer LCD panels at comparatively lower prices but having an in-house supplier may enable the Korean firm to further lower the prices. It now remains to be seen how things pan out.