April 2, 2012 – BUSINESS WIRE — Samsung Electronics officially spun out its LCD Business as new corporation Samsung Display Co. Ltd, display panel technology and product maker. Donggun Park, EVP and head of the former LCD Business, will lead Samsung Display as CEO.
Samsung Display will begin operations after its incorporation registration tomorrow.
The former Samsung Electronics LCD Business recorded KRW 22.7 trillion (approximately USD20 billion) in annual revenue in 2011. It has 20,000 employees and 5 display production sites globally. The LCD Business operated for 21 years, starting as an R&D unit for Samsung Electronics in 1991.
At an inauguration ceremony, Samsung Display was encouraged to become the #1 global display manufacturer, by Park and about 350 employees in attendance. By unit sales, Samsung’s LCD Business was the second largest display maker behind LG Display. Samsung Display will “supply a wide variety of customized products,” Park said. The new corporate structure will allow Samsung Display to respond to rapidly changing market conditions, the company reports. IHS analysts say the change will boost Samsung Display’s short-term competitiveness, and may herald the long-term dominance of active-matrix organic light emitting diode (AMOLED) in display technology.
As its own corporation, Samsung Display can attract many more customers without concerns about competitors with Samsung Electronics. Conversely, Samsung Electronics can source panels from multiple suppliers, IHS notes.
Samsung Display Co. Ltd. provides display panel technologies and products for consumer, mobile, IT and industrial applications. For more information, visit www.samsungdisplay.com.
Hon Hai recently took a stake in Sharp’s Gen 10 display fab, which is expected to improve utilization rates for the display company, which lags behind Samsung and LG Display. Hon Hai’s partnership created a new subsidiary called Sharp Display Product.