Samsung to shut down its LCD business in June, here’s why

Samsung has always been ahead of its game when it comes to phone screens. The company’s LCD panels in the past were used in phones, TVs, laptops, and other devices. However, ever since OLED became widely popular among TVs and smartphones, Samsung continued to work majorly on the modern OLED technology, while the LCD panels’ use case remained limited. Now, reportedly, Samsung will shut down its LCD business in the vow of making OLED and Quantum dot (QD) screens.

LCD Prices have fallen over the years

The report comes from South Korea, where Samsung is said to shut down its Liquid Crystal Display (LCD) business in June of this year. This is majorly due to the competition from Chinese and Taiwanese makers that offer cheaper LCD panels.

Samsung was expected to close its LCD-making business months later this year, however, the company decided to discontinue the business early due to rapid losses from falling LCD prices in the market.

According to Display Supply Chain Consultants (DSCC), the average price of LCD panels has fallen rapidly. In comparison to 2014’s 100, the price index of LCD panels this year in September will fall down to 36.6. In April this year, it was 41.5, which was considered a record low for the LCD price index.

Another reason for Samsung Display to close its LCD lineup is because its largest buyer, Samsung Electronics is taking screens from Chinese and Taiwanese counterparts like BOE technology group and AU Optronics Corp. It appears to be cheaper that way.

Originally, Samsung planned to shut down the LCD business in 2020, but due to the rise in LCD prices amid the COVID-19 pandemic, led the company to continue it. Now, however, the prices have fallen down and they’ll continue to fall, as shown by DSCC. That said, Samsung is said to cut off its LCD panels for large TV screens and focus only on the OLED and Quantum dot (QD) panels.

Since the LCD business has been working for years, it has a great workforce behind it, which will be probably transferred to the Quantum dot (QD) business.

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