Samsung Launches Display Panel Subsidiary
It was just over a month ago when we informed you that Samsung Electronics will be shifting its business focus from LCD to OLED displays, as well as the possibility of a new business spin-off brewing in the works. Well, that wait is over, for Samsung Electronics has officially launched their new display panel affiliate, Samsung Display, as reported by The Korea Times yesterday.
Samsung Display, based in Tangjeong, will commence operations with 6.6 billion won in financing from its parent company Samsung Electronics. According to The Korea Times, Samsung's latest spin-off will be focusing mainly on LCD and OLED display businesses with five global manufacturing bases and 20,000 employees scattered across the globe.
This move emerged right after Sony, Hitachi, and Toshiba have signed a merger-deal with INCJ (Innovation Network Corporation of Japan) to integrate their display businesses recently. "Korea’s Samsung is now battling Japan Inc. This is very interesting. The merger-deal in Japan was aimed at beating Samsung in next-generation displays. The key point is how we effectively secure our bottom line,"’ added a senior Samsung executive who declined to be named. Based on Samsung's official press release, Samsung Display originally started as an R&D arm of Samsung Electronics back in 1991. With the new business entity, Samsung is hoping that they would be able to deal with "rapidly changing market conditions more effectively".
Samsung has made plans to increase their investment in OLED displays (presently regarded as a next-generation flat-screen) amid the sluggish growth of traditional LCD panels. Understandably, Samsung's new-found affiliate will probably give LG Display some food for thought, given that Samsung's closest rival has vested interests in the LCD and OLED industry as well. An LG spokesman declined to comment on the impact of Samsung Display in the global market, although he did mention that LG is investing more in OLEDs as planned.