Samsung LCD Biz to be Spun off into Samsung Display from April 1st

February 20, 2012, By Sanjeev Ramachandran

Samsung, as you all know, is one of the leading suppliers of display panels to many other companies, including Apple. The company is now spinning off their LCD division as Samsung Display. The restructuring of the company is expected to take place on April 1 after all the necessary approvals.

Though the separation of the LCD segment from Samsung Corporation was earlier in the news, the company remained silent to the rumors.

Samsung has now decided to reveal that the new section will start off with $667.3 million as working capital. They have also stated that that this move is basically focused to boost up their core business profitability.

In the past, Samsung had mixed results with their LCD products. Although the company was successful in smartphone and tablet display panels, they faced many problems with traditional computer and TV products.

In the meantime, Samsung had a good run with their OLED displays, currently featured in the high-end smartphones like the Galaxy Note. The company added that the OLED division, which will continue with Samsung Corporation, will extend their display panel products to the TV lineup in the coming days.

It’s believed that the LCD segment split up will affect the companies that depend on Samsung display panels. The companies will become weaker as they might be made to wait for Samsung to supply the display panels to complete their products.

Remember, the display supply market is now getting over crowded with players like LG, Sharp, Sony, and many China-based lower-cost companies entering the scene with their own products. Do you think Samsung has a steep hill to climb?

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