Samsung to shut down LCD panel manufacturing in the end of June

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It’s the end of an era for LCD panels, or at least for those manufactured by Samsung. The Korean firm has been teasing the end of its LCD manufacturing for years, but now, the deadline is about to be reached. From June 2022, Samsung Display will no longer produce liquid-crystal displays (LCD). This does not mean that the end of LCD panels in smartphones, computers, and other electronics. It’s just Samsung leaving the segment due to tough competition from its Chinese and Taiwanese counterparts.

Instead of keeping a tepid LCD business, the company will shift efforts to OLED (organic light-emitting diode) and QD displays. The OLED panels have become the “best” for the smartphone market. There is still a predominance of LCD screens, but most of the flagship, premium mid-range, and even conventional smartphones are getting OLED displays nowadays. LCDs are still very popular in the segment of PCs and laptops, however. 

According to Display Supply Chain Consultants (DSCC), the average price index of LCD panels, measured against 100 in January 2014, will fall to 36.6 in September of this year. The figure has dropped farther from the record low of 41.5 in April of this year. It’s also 58 percent lower than the record high of 87 in June 2021.

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Unfortunately, no investment plan details have since been announced. However, the employees of the LCD business should retain their jobs. The company will likely move them to the Quantum Dot Display business. Worth noting, that Samsung has been trying to leave the LCD segment since 2020. The initial plan was to close the business at the end of 2020. However, these plays have been delayed by Samsung Electronics. The sudden increase in the prices of the LCD panels during the COVID-19 pandemic urged Samsung Display to keep the manufacturing for a while. This resulted in an entire 2021 of continuous manufacturing. Now, however, the business seems to have reached the deadline.

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The display affiliate was first formed in 1991, as an LCD business arm under Samsung Electronics. It formally launched in 2021, as Samsung Display. It has merged with three local and Japanese makers of active-matrix organic light-emitting diodes (AMOLED), for the production of advanced types of displays. The company will no longer produce the panels for Samsung TVs which will likely push forward the portfolio of QD and OLED smart TVs.

The mid-range segment of smartphones may not suffer a big impact. After all, there are countless LCD makers still operating in the industry. As far as the mobile segment is concerned, the company is doing a good job. The Galaxy S22 series is successful in China, and the company is preparing the terrain for the Galaxy Z Fold 4. The flagships and the foldable offer the best Samsung has been developing in display tech.

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