Samsung Display has been working on managing its customers since it announced its plan to withdraw from its LCD business. Vice-President Choi Joo-seon of Samsung Display who leads the large panel business sent letters to Chinese customers and explained to them about Samsung Display’s plan to withdraw from its LCD business and presented them with new ways of collaboration.
According to the industry, it is heard that Vice-President Choi Joo-seon of Samsung Display who oversees Samsung Display’s large panel business and QD (Quantum Dot) business sent letters to Samsung Display’s key customers from China and informed them about Samsung Display’s plan to stop supplying LCD panels.
“We explained to our Chinese customers about a very important decision we made based on business strategy.” said Vice-President Choi. “We have made major losses from our LCD business as the global large LCD panel market has gone through a recession for the past few years.”
“In order to overcome this crisis and to secure competitive edge within the global large panel market, we started investing in QD display since October of last year.” said Vice-President Choi. “We are going to stop producing large LCD panels after this December and accelerate our QD display business instead.”
Samsung Display recently announced that it would stop producing LCD panels and shift its production towards QD display. As Its profitability and business value in LCD has fallen off as LCD prices have continued to drop due to excess supplies from Chinese companies. This decision was made in just 15 days after Vice-Chairman Lee Jae-yong of Samsung Electronics visited the Asan complex on March 19th and examined business strategies.
It seems that Vice-President Choi sent letters to Chinese customers in order to prevent any disruption to their operations and to look for new ways of collaboration by informing them about Samsung Display’s plan to shift its production towards QD display. Chinese TV makers such as Hisense, Haier, TCL, Changhong, and Konka currently use Samsung Display’s LCD panels. Samsung Display can secure continuity and a steppingstone for growth when these companies start producing their products using QD display.
“Because we believe that out decision to withdraw from LCD business will have an impact on your business, we are going to discuss about possible amounts of quarter supplies and timing for discontinuation.” said Vice-President Choi through his letters. “We hope to continue to have collaborations even after we stop producing LCD panels in order to achieve new innovation.”
It is expected that Samsung Display will present a detailed plan of converting production of LCD panels into QD displays.
Samsung Display is going to focus on the “Q1 line” that is a QD display production line. The Q1 line will replace Samsung Display’s current Gen 8 LCD production line. Considering the fact that the Q1 line is expected go on operation next year, it is likely that Samsung Display will clean out the Gen 8 LCD line by end of this year. Samsung Display sent major equipment and systems from the 8-1 line to a Chinese LCD module maker called Efonlong. It is expected that Samsung Display will actively push for selling low-generation LCD production lines located in Suzhou and others.
Staff Reporter Yoon, Heeseok | email@example.com