Samsung Electronics’ Samsung Display unit said on Tuesday that it will expand production of liquid crystal display LCDs for TVs as more people seek home entertainment during the coronavirus pandemic.
Samsung Display’s decision to extend the production of LCD panels in South Korea for an indefinite period of time skips its announcement in March that it will end all production by the end of the year to focus on more advanced technology.
She said at the time: The decision was made to provide more resources for quantum dot (QD) screens, with the current employees in the LCD production sector being transferred to the OLED and QD screen production sector, provided that it continues to supply LCD screens to customers without problems until the end of the year.
The TV division of Samsung Electronics uses most of the LCD screens produced by Samsung Display to produce its QLED TVs.
Samsung Display’s move to end LCD production was widely expected after announcing in October an investment of $ 11 billion in facilities and research to upgrade the QD product line, as supply increased amid weak global demand for smartphones and televisions at the time.
Samsung Display said the time period for the extension depends on considerations of profitability and market conditions, and it said in late October that it was considering a short-term extension.
Local media reported earlier today, Tuesday, that production will be extended for a year at the request of Samsung Electronics’ manufacturing division, citing unnamed technology industry sources.
The stay-at-home trend triggered by the coronavirus pandemic led to a 30% quarter-on-quarter rise in global demand for panels in the third quarter of the year amid increased demand for televisions and laptops, according to technology research firm TrendForce.
However, the company added that an influx of more production capacity from Chinese LCD manufacturers is likely to lead to oversupply in the next year.
Samsung produced LCD panels in both South Korea and China, but earlier this year it sold the controlling stake in its LCD production unit in Suzhou to TCL Technology Group’s China Star Optoelectronics Technology unit.