Samsung used to be the largest LCD panel manufacturer, but in recent years, Chinese companies such as BOE and CSOT have rapidly increased their market share. Samsung and LG continue to lose ground, resulting in BOE surpassing LG in 2018. BOE is currently the world’s largest manufacturer of LCD panels.
Samsung originally planned to stop manufacturing LCD panels by the end of 2020. However, last year the LCD panel market began to grow. It was agreed that the Samsung LCD factory would continue to operate for another two years. The company planned to remain in this market until the end of 2022. However, the LCD panel market has changed since the end of last year. The price has dropped significantly and is now in free fall. By January of this year, the average price of a 32-inch panel was just $38, down 64% from January last year.
This situation forced Samsung to reconsider its plans. The South Korean manufacturing giant is now planning to phase out LCD panel production this June, half a year ahead of schedule. Samsung Display, a subsidiary of Samsung Electronics, is moving to higher quality quantum dot QD panels. LCD panels required by Samsung Electronics will be purchased from other manufacturers.
According to information released by Samsung Electronics, the company’s top three LCD panel suppliers are BOE, Huaxing Optoelectronics and AUO. All of them are Chinese companies. Due to high demand in South Korea, Samsung Display had to expand its production of LCD TVs and monitors in South Korea. Exiting the LCD market will allow the company to focus on more advanced technologies.
Source: ixbt
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