Samsung Display expands LCD production in South Korea indefinitely
Samsung Electronics’ display unit said on Tuesday it would expand production of liquid crystal display (LCD) panels for televisions and monitors, as more people sought home entertainment during the pandemic coronavirus.
Samsung Display’s decision to expand LCD production in South Korea indefinitely cancels its announcement in March that it would end all production by the end of the year to focus on technologies more advanced.
Local news outlet IT Chosun reported earlier on Tuesday that production would be extended for one year at the request of Samsung Electronics’ set manufacturing division, citing anonymous tech industry sources.
A spokesperson for Samsung Display declined to comment on IT Chosun’s report.
The stay-at-home trend triggered by the coronavirus pandemic led to a 30% quarter-over-quarter spike in global demand for panels in the third quarter of the year as demand for televisions and d laptops were on the rise, according to technology research firm TrendForce.
However, the firm added that the influx of more production capacity from Chinese LCD manufacturers is likely to exacerbate a supply glut next year.
Samsung had produced LCD panels in South Korea and China, but earlier this year sold a controlling stake in its Suzhou LCD production unit to TCL Technology Group Corp’s China Star Optoelectronics Technology unit.
