It's Official: Samsung Decides to Ditch Its LCD Business

Out with the old and in with the new -- that's the motto driving Samsung's latest business decision. The display maker officially announced its intentions of spinning off its liquid crystal display (LCD) division so it can better focus on the future of display technology, which Samsung feels has everything to do with organic light-emitting diode (OLED) panels and little to do with LCDs.

"Currently, the display market is undergoing rapid changes with OLED panels expected to fast replace LCD panels to become the mainstream," Samsung said. "Amid this structural change of the Display industry, adopting measures for change and innovation, including business restructuring, are essential to improve our competitiveness for our Display business."

Samsung believes the future of television lies in OLED technology, as represented here.

Samsung's LCD business will be spun off into a new wholly-owned subsidiary, and as time goes on, the company will consider "various restructuring measures," one of which could include a possible merger with Samsung Mobile Display and S-LCD Corporation.

The spin-off is hardly surprising. It was previously rumored Samsung was considering ditching its LCD business, which reported a hellish operating loss of $666 million (750 billion won) last year. Samsung has set April 1, 2012 as the effective date of the spin-off.