Digital TV News

Samsung LCD unit spin-off gets the go ahead

Tuesday 21 February, 2012

By Helen Thomas

Samsung says spin-off will allow quicker business decisions and superior products.

Samsung has edged closer to launching its Liquid Crystal Display (LCD) spin-off unit, Samsung Display Company Ltd.

Plans for the spin-off division have been approved by Samsung’s board of directors, and now await shareholder buy-in prior to an anticipated launch date of 1 April.

The global slump in TV sales has hit the makers of LCD technology hard, in particular Samsung, which is the world’s biggest TV and flat screen manufacturer. The move to launch a spin-off subsidiary company is believed to be part of Samsung’s efforts to ensure that it maintains its position as one of the leading, and most competitive, manufacturers of technology in the world.

Samsung’s head of LCD business, Donggun Park, believes that launching its LCD division as a spin-off “will allow us to make quicker business decisions and respond to our clients’ needs more swiftly.”

He added: “Through enhancements in business competitiveness, we will continue to provide superior products and services for the market.”

Samsung appears to be concentrating on vibrant, super-thin displays as it moves forward, unveiling an enormous 55 inch organic light-emitting diode (OLED) - the technology behind high-end smartphone and tablet screens - TV at this year’s International CES conference.

However, while a move to OLED may be looking to the future, Samsung will need to find a way to bring the costs of the technology down if it is to appeal to a wider market.