Seoul: South Korea’s Samsung Electronics Co is shifting its focus towards new generation OLED display technology, and said it will spin off its loss-making LCD flat-screen business into an affiliate.
The company said the spun off unit will be officially launched as a new corporation on April 1, 2012 with 750 billion won in capital.
The outlook for liquid crystal display TVs has dimmed as shoppers in developed markets have traded in their bulky cathode-ray tube TVs for flat screens, and competition has intensified from low-cost Chinese manufacturers.
“The spin off will allow us to make quicker business decisions and respond to our clients’ needs more swiftly. Through enhancements in business competitiveness, we will continue to provide superior products and services for the market,” executive V-P and head of LCD business of Samsung, Donggun Park, said in an e-mailed response.
Samsung said the decision is in view of the rapidly changing market and is intended to streamline the decision-making process. The company is looking at “differentiated technology” to achieve the objective. The decision comes at a time when LCD business is witnessing a decline in demand across the industry. Samsung shares the problem with rival Sony and Panasonic. Panasonic too has forecast a record annual net loss of $10.2 billion, owing to the weak demand of LCD products.
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