Samsung Display will announce plans to invest in large organic light emitting diode (OLED) panels in October. The display giant is speeding up the development of next-generation displays after shrinking its LCD business, which has lost profitability in a chicken game ignited by Chinese display makers.
Samsung Display will lay out a plan to invest about 13 trillion won in the Tangjeong plant in Asan, Korea in October. The company will convert current LCD production lines to large OLED production lines. Samsung Display has been gradually reducing output from the LCD production lines L8-1-1 and L8-2-1 in Tangjeong since July, and recently began a workforce downsizing.
Samsung Display's investment is reportedly being led directly by Lee Jae-yong, vice chairman of Samsung Electronics. In fact, Lee visited Samsung Display's Tangjeong plant on Aug. 26 and urged officials to find future growth engines. “We cannot give up the large display business because we are facing some difficulties now,” Lee said at the time. “We have to spur new technology development to shape the future.”
Industry watchers, however, point out that Samsung Display's investment plan falls short of expectations. "A specific investment plan is not released yet, but judging from what has been reported, the investment volume is smaller than expected," said an official of the display industry. "To lead the market for large OLED displays and flexible OLED displays, the company needs to make a larger investment."