Samsung Electronics, the world's largest maker of LCD monitors, has decided to spin off its LCD business to concentrate on more profitable and rapidly growing OLED market. The LCD business unit will continue to function as a wholly-owned subsidiary of Samsung Electronics and make appropriate products under the brand.
"Currently, the display market is undergoing rapid changes with OLED panels expected to fast replace LCD panels to become the mainstream. Amid this structural change of the display industry, adopting measures for change and innovation, including business restructuring, are essential to improve our competiveness for our display business," a statement by Samsung reads.
The LCD business will be spun off from Samsung Electronics and become a new corporation (wholly-owned subsidiary of Samsung Electronics). Then, going forward, the new corporation will consider adopting various restructuring measures including a merger with Samsung Mobile Display and S-LCD Corp. (formerly, a joint venture between Samsung and Sony).
Independent operation as a company specializing in display panels going forward, is expected to enable Samsung LCD business to achieve continuous growth by strengthening its competitiveness based on the select and focus strategy and taking an advantageous position in the future display market ahead of competitors; reinforce its technological competitiveness; enhance speed in investment/strategic decision-making process; and establish autonomous and responsible management.
Shareholders should approve the spin-off in mid-March and the new company will become functional on April 1, 2012. The board of directors approved the spin-off of the LCD business on Monday.