Subject to shareholder approval, Samsung Electronics will spin off its LCD business on April 1st. The company will focus its display operations on OLEDs.
The LCD industry has been commoditising with demand and prices falling, and Samsung’s LCD business lost $665m last year.
OLEDs are seen as having a better viewing angle, richer colours and potentially better energy efficiency. OLEDS also have, in the long-term future, the potential to be flexible. The big disadvantage of OLED is short life.
Because OLED technology has some way to go, Samsung is banking on its R&D skills to keep it ahead of the market and support a potentially profitable product rather than an increasingly unprofitable product.
