Samsung Display Spins Off Red Hot OLED Business

Samsung Display makes some of the best performing panels out there, particularly in mobile—it's Super AMOLED displays always seem to impress us. Going forward, Samsung Display will devote even more resources to its organic light-emitting diode (OLED) efforts by spinning off its OLED manufacturing arm and shifting employees from its traditional liquid crystal display (LCD) business.

"Samsung Display separated the company's OLED business division and more of Samsung Display's workforce joined the OLED business unit. The latest decision was part of the ongoing Samsung Group-initiated efforts to restructure unprofitable businesses," an official familiar with the plans told The Korea Times.

Samsung OLED

The official added that Samsung is putting in place an exit strategy for LCDs, which are no longer profitable for the company, or at least not profitable enough to hold Samsung's interest. That hadn't always been the case, but rising competition from low-cost Chinese competitors has driven down the value of traditional LCDs. On top of that, demand for LCDs has been on the decline.

Going forward, Samsung Display wants to put a much bigger focus on OLED panels for small and medium size digital devices, like phones and tablets, as opposed to bigger gadgets like televisions.

"Samsung Electronics has no imminent plans to invest more in OLED TVs and TVs based on LCD technology such as quantum dot displays that are customized to keep Samsung plants operating given the manufacturing infrastructure," a fund manager said.

It's also said that Samsung Display scored a contract with Apple to supply its OLED panels for use in the first batch of new iPhone devices late next year. LG also got in on the action, securing rights to supply OLED panels for the second batch.