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Samsung Display Considering Halting Some LCD Production Lines
A Move to Reduce Losses
Samsung Display Considering Halting Some LCD Production Lines
  • By Kim Eun-jin
  • August 16, 2019, 12:10
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Samsung Display’s Asan Campus in South Chungcheong Province

Samsung Display is considering reducing domestic production of large LCDs significantly as LCD prices continue to fall due to Chinese markers’ aggressive sales strategies, the TV market is shrinking, and organic light emitting diode (OLED) panels are replacing LCD panels fast.

The company is considering reducing output from the 8.5th-generation lines on its Asan Campus in South Chungcheong Province, including the L8-1 line that produces 90,000 LCD panels per month, and the L8-2-1 line, industry sources said on Aug. 15

If the company decides to shut down the production lines, it will cut almost by half its output of 250,000 LCD TV panels for the Korean market. Samsung Display is considering establishing production lines for quantum dot (QD) OLED panels, which are considered a next-generation display, in this space, but has not made the final decision yet.

LG Display is also considering shutting down the P8-2 line in Paju, Gyeonggi Province, which is also an 8.5th-generation LCD panel line.

The Korean display industry stops or will stop operating LCD lines one after another because losses are increasing due to a sharp drop in LCD panel prices. The average selling price of 43-inch LCD panels in July stood at US$77, down 27 percent from US$106 in January 2018, market researcher IHS Markit said.