Samsung to focus on new TV technology

SSNLF, LPL

Samsung Electronics Co. (KS:005930),(PK:SSNLF) said it will spin off its unprofitable liquid-crystal-display (LCD) division as the company changes its focus to the next generation of TV displays.

The new Company, provisionally named Samsung Display Co., will be set up on 1 April, Samsung said in a filing today. Samsung may merge the unit into the Samsung Mobile Display venture that makes organic light-emitting diode, or OLED, panels, Nam Ki Yung, a Seoul-based spokesman, said by phone.

Samsung’s LCD business had an operating loss of 750-B Won (US$668-M) last year as TV sales slowed. Merging its panel-making operations will help the company expand its OLED business by utilizing LCD-manufacturing resources, according to Korea Investment & Securities Co. and Hanwha Securities Co.

OLED displays are mostly used in mobile devices such as Samsung’s Galaxy SmartPhones, the Suwon, South Korea-based Company and competitor LG Electronics Inc. (KS:066570),(NYSE:LPL) are looking to use the technology in TVs and may start selling sets this year. The new models can be wafer thin and produce richer colors than LCD sets.

The OLED display market may grow to more than US$20-B by Y 2018, accounting for about 16% of the overall panel industry, from an estimated US$4-B last year, according to California-based DisplaySearch.

Samsung plans to spend 6.6-T Won on its display business this year, the company said last month. While the Company did not elaborate on how the money will be spent, investment in LCDs will not be “significant,” Robert Yi, senior vice president for investor relations, said on a conference call after the release Q-4 earnings in January.

Samsung Mobile Display was set up in Y 2009 by Samsung Electronics and affiliate Samsung SDI Co.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
www.livetradingnews.com

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Posted by Shayne Heffernan on Feb 20th, 2012and filed underAsia, Asia-Pacific Companies, Companies, Equities, Latest News, Paul Ebeling, Personal Goods, Retail, Retail & Consumer, Science, South Korea, Stocks, Technology.You can follow any responses to this entry through theRSS 2.0Responses are currently closed, but you can trackback from your own site.