GO
Loading...

Samsung Says Considering Options for LCD Business

Samsung Electronics said on Tuesday it is considering various options to improve competitiveness of its loss-making LCD flat-screen business but declined to comment on a media report that it may spin off the operation.

New LED 9000 series televisions by Samsung are displayed at the 2010 International Consumer Electronics Show at the Las Vegas Convention Center January 7, 2010 in Las Vegas, Nevada. The TVs have built-in 3-D and processors that can convert 2-D to 3-D on the fly. CES, the world's largest annual consumer technology tradeshow, runs through January 10 and is expected to feature 2,500 exhibitors showing off their latest products and services to about 110,000 attendees.
Getty Images
New LED 9000 series televisions by Samsung are displayed at the 2010 International Consumer Electronics Show at the Las Vegas Convention Center January 7, 2010 in Las Vegas, Nevada. The TVs have built-in 3-D and processors that can convert 2-D to 3-D on the fly. CES, the world's largest annual consumer technology tradeshow, runs through January 10 and is expected to feature 2,500 exhibitors showing off their latest products and services to about 110,000 attendees.

The potential restructuring comes after it ended its liquid crystal display (LCD) venture with Sony recently and as demand growth for flat-screens weakened sharply due to rising competition from China and slack television sales globally.

Major display makers from Samsung to LG Display are shifting to a newer type of flat-screen display called organic light-emitting diode (OLED), which is currently used mainly in high-end smartphones, betting the new technology will replace LCD in larger-sized screens such as TV displays.

The South Korean firm said earlier this month that it may fully take over its unlisted OLED making unit Samsung Mobile Display.

Some analysts believe Samsung may merge the more profitable OLED business with its LCD operation and convert part of LCD production capacity into OLED manufacturing lines.

"We are internally reviewing various options but nothing has been decided yet," Samsung spokesman James Chung said.

The Chosun Ilbo reported on Tuesday in an unsourced report that Samsung was considering spinning off its LCD business, which incurred more than 1 trillion won ($891 million) in operating loss in 2011.

Samsung vies with local rival LG Display for the title of the world's top maker of LCD flat-screens, which are mainly used in handsets, smartphones, computers, laptops and television display.

Symbol
Price
 
Change
%Change
6758.T
---

Featured

Contact Technology

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Squawk Alley