According to new information, Samsung is completely shutting down the manufacturing operations of the unprofitable Liquid Crystal Display Panels from June 2022. Samsung was operating this manufacturing facility for 30 years in Asan, South Chungcheong Province.
The company is taking this step to lighten the great loss that is been ramping due to increased state tax. As the Chinese competitors are already in the market and are raising their dominance in OLED and QLED manufacturing market. Samsung needs to focus on its frontline components and products.
Currently, LCD usage is very negligible and it seems to be a business of complete loss as compared to those cutting edge components like a light-emitting diode and quantum dot display panels that are foreseen as a trending future.
To be mentioned, this will be the end of a three-decade-old LCD panel supplier business. I think it is a very smart decision by Samsung, as the price of these panels has already fallen down from 46% to 50%, which really does not make any sense to produce them anymore.
The market share of such displays has already shrunken from 22% to 2%. After the reduction in operating profits Samsung Display was hanging in between the decision, but now finally Samsung Electronics has decided to discontinue its production.