Samsung Invest $11 Billion Despite LCD Oversupply
Samsung Display has announced a reported US$11 billion investment into South Korean facilities and research to upgrade production as major clients shift to competitor technologies.
According to Bloomberg, Samsung Electronics has said the investment would be spent by 2025 to improve facilities to produce more advanced display screens.
The South Korean government has also pledged investments into next-generation displays to boost the Samsung objective, with president Moon Jae-in attending the announcement event alongside Samsung Electronics Co. Vice-Chairman Jay Y. Lee.
The investment announcement comes just after the company’s decision to end smartphone production in China in order to ‘enhance efficiency’ in its manufacturing.
The Apple Inc supplier is currently battling oversupply issues due to weak global demand for liquid crystal display (LCD) panels as demand shifts to organic light-emitting diode (OLED) panels.
The main focus will be to reportedly convert one of its South Korean LCD lines into a mass-manufacturing facility for “quantum dot” screens known as QLED, following the suspension of production last month.
According to a company statement, operations will begin from 2021 with a projected annual capacity of 30,000 panels larger than 65 inches.
Production will continue to increase from the initial stage, with the entire project predicted to create 81,000 jobs.
“Our company plans to overcome the crisis of the large-scale display industry through active investments,” said Samsung in a statement.