Samsung Display Inc. plans to invest 13.1 trillion won (about $11 billion) to develop and manufacture next-generation display products to cope with supply and price pressures from Chinese competitors.
The Korean company announced the plan at an event attended by South Korean President Wen Zai and Samsung Electronics Vice Chairman Li Zaijun. The investment is seen as a move by Samsung to reshape the display industry, while also helping the company maintain its leading position in the global market and its dominance in the Korean market. Wen Zai said that the Korean government will invest about 400 billion won ($0.33 billion) to promote the development of next-generation displays.
What Benefits Will This Investment Bring?
The company said in a statement that they will build a quantum dot display production line in Lushan. They will start production in 2021, with an initial capacity of 30,000 panels larger than 65 inches. After that, the production capacity will increase. The company has also developed a long-term development plan as of 2025. Samsung added that the investment will create 81,000 jobs.
Samsung and LG Display are currently responding to fierce competition from Chinese suppliers such as BOE Technology Group. Recently, BOE has upgraded its LCD manufacturing capabilities and is now involved in next-generation screen technology. In order to solve problems such as falling profit margins and customer churn, Samsung is promoting the development of quantum dot displays.
Samsung Has Three Pillar Business!
Samsung’s Li Zaiyu promised that the company will make a long-term investment in the display business. He said the display business is one of Samsung’s three pillar businesses. Thus, it is as important as the storage chip business and the smartphone business. Li Zaiyu also said that Samsung is the world leader in display technology. The company still wants to bet on this market. Although the business environment deteriorates. The trade dispute between South Korea and Japan creates uncertainty about the supply of display materials.
Also Read: Apple Invests $200 mln In JDI To Reduce Reliance On Samsung
By the way, this week, Samsung said its quarterly profit fell more than 50%, which was lower than analysts’ expectations.
Samsung is Korea’s largest company and the world’s leading producer of high-end OLED displays, but the company encountered difficulties last year, mainly because Apple’s orders have plummeted, and the latter’s iPhone XS sales performance is far lower than expected. Although analysts believe that consumer demand for this year’s new iPhone will raise.