"Samsung Display and LG Display, the two South Korean technology behemoths, announced plans earlier this year to stop the production of LCDs by the end of 2020. The announcements first appeared in Reuters' report s and aim to consolidate the two companies' lead in organic light emitting diode (OLED) panels, while conceding to Chinese manufacturers who have aggressively expanded their LCD productions."
"The recent generation LCD production units produce larger size display panels and an enhanced throughput, rendering the former generation's smaller size production lines uncompetitive in the current market. Samsung Display and LG Display, instead of narrowing the gap by introducing new production lines to match up with the competitive cost at enhanced production throughput, chose to strengthen and consolidate their leading position in organic light emitting diode (OLED) and Quantum Dot (QD) display businesses."
Samsung Display and LG Display announced plans to stop LCD production by the end of 2020 to consolidate leadership in OLED and Quantum Dot panels. LCD prices slumped due to aggressive capacity expansion by Chinese manufacturers backed by state subsidies, which widened operating losses at both South Korean companies. Newer-generation Chinese LCD lines produce larger panels with higher throughput, making older smaller lines uncompetitive. Samsung and LG opted to invest in OLED/QD rather than match Chinese LCD cost structures. The LCD exit creates space for Chinese players and opportunities for corporates or NPEs to pursue Samsung and LG patent portfolios.
Read at IPWatchdog.com | Patents & Intellectual Property Law
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