Samsung Display stops production of LCD panels

It’s a page of history that will turn for Samsung. The Korean group will end the production of LCD panels, in favor of technologies with better margins.

Samsung Display will be done with the production of LCD panels during this month of June. A carefully considered decision, which should have been made two years ago. But the pandemic triggered a strong demand for computer hardware, and the manufacturer took the opportunity to garner additional sales at higher prices for its LCD.

One technology replaces the other

But now, this burst is behind Samsung Display, which has therefore decided to turn to OLED and QD OLED, two technologies that can generate higher margins. The group confirmed the drop in profitability of the LCD activity, a consequence of the very fierce competition from the Chinese groups BOE Technology and Taiwanese AU Optronics.

According to a study by Display Supply Chain Consultants (DSCC), the average price of LCD panels will only represent 36.6% of what it was in January 2014! Under these conditions, it is better to look to the future. And the immediate future is undeniably OLED.

While LCD remains the technology of choice for affordable televisions and monitors, as these products move upmarket, they increasingly incorporate OLED panels that offer performance unmatched by LCD: higher contrast, better brightness, power consumption. lower energy, deep blacks.

In return, OLED costs more, which in turn allows Samsung Display to gain in profitability. The company supplies parent company Samsung of course, but it also has many customers across the industry. The end of the LCD could be compensated for quite largely by putting the package on the OLED. However, it will be necessary to be wary of Chinese competition, which is devouring market share in this sector…

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