Samsung has decided that the time has come for the company to spin off its LCD manufacturing business into a new business entirely. The new company will be named Samsung Display Co. in the interim, and the new company will be set up with $668 million dollars of paid-in capital. The move is still awaiting approval from its shareholders, but the vice president of Samsung’s LCD business seems pretty optimistic that the shareholders will agree that the company is making the right move.
From the press release:
[quote]Bakdonggeon vice president of Samsung Electronics’ LCD business manager: “This split LCD business is the speed of your business can be secured to the diverse needs of Customers.Therefore were able to respond quickly,” he said. “Business competitiveness to our customers advanced products and a step I will try to provide technology and services,” he said.[/quote]
The company may also merge with Samsung Mobile Display in the future. Samsung is betting on OLED, and thinks that the technology will eventually win against an aging LCD technology. Samsung is the biggest panel maker on the market, and its LCD technologies are found in Apple’s iPad, as well as Lenovo and HP PCs, not to mention that they’re found in 57 percent of all Samsung televisions on the market.
No matter how you cut it, this move affects more than just Samsung. A lot of companies rely on Samsung for its LCD panels, and display technologies. It’ll be interesting to see how this plays out and if Samsung LCD panels find their ways into the next iPad and iPhone.