Samsung Display had previously planned to shut down its LCD panels production by the end of 2020, but it is now being reported that the plan has been slightly postponed. The production of LCD panels at its L8 fab in the Asan plant would get postponed by March 2021 due to the covid-19 pandemic.Samsung has been manufacturing LCD panels at its Asan plant in South Korea and its Suzhou plant in China. The company has already signed a contract to sell its Suzhou plant to CSOT (China Star Optoelectronics Technology), a Chinese firm that makes LCD and OLED panels. The firm also tied their hands with Efonlong, another Chinese display manufacturing firm.
Due to Covid-19 Pandemic, there is a rise in demand for LCD panels. The firm Samsung is also in talks with various companies to sell its equipment. The company will finalize the buyer by February 2021 and shut down the LCD production by March.
The reason behind the shutdown of LCD panels is the transitioning of Samsung from LCD panels to Quantum Dot (QD-OLED) displays. The company recently announced its plan to invest around $11.7 billion until 2025 to expand its QD-OLED business. However, it would only be able to make 30,000 QD-OLED panels per month by the second half of 2021. This is enough when compared to 2 million 55-inch TVs per year but not when we consider 200 million TVs are sold every year.
Samsung Visual Display business, which sells TVs, will reportedly not launch any QD-OLED TV next year as the idea of OLED has been against the company’s marketing strategy for the past 4-5 years, so they ll be selling the panels to the potential companies Panasonic, Sony, and TCL.