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This article was published on April 2, 2012

Samsung spins off its LCD business, becomes the world’s biggest display manufacturer overnight


Samsung spins off its LCD business, becomes the world’s biggest display manufacturer overnight

It’s been a long time coming but today Samsung has announced that it has successfully spun off its LCD business and formed Samsung Display.

The new company that will focus on the development and sale of its display panel technologies and panels, becoming the world’s biggest display manufacturer overnight.

Samsung Display held its inauguration ceremony on Sunday and will begin operations after filing its incorporation registration on April 3. As a result of its incorporation, Samsung Display launches with 20,000 employees and five production facilities across the world.

Prior to the spin-off, Samsung’s LCD business was already posting revenues of 22.7 trillion KRW ($20 billion), the new company will operate free from Samsung Electronics, assisting it when it fights for orders from major rivals including Apple and other smartphone and tablet vendors.

The Cupertino-based firm is one of the customers that Samsung provides parts for smartphones, tablet and other devices. For example, the Korean company supplies the Retina display and A5X processor for Apple’s new iPad, as a recent product teardown revealed.

Donggun Park, executive vice president and head of the former Samsung Electronics’ LCD Business and new CEO of Samsung Display said:

“We will make Samsung Display a well-respected company through continuous efforts to supply a wide variety of customized products that provide great value to our customers.” He added, “By continually staying one step ahead of our competitors, we can make our company the very best in the display market.”

The announcement comes just days after Foxconn’s parent company Hon Hai announced it had invested in Sharp’s display business. The move comes at a time when manufacturers are vying for lucrative contracts from major smartphone, tablet and consumer electronics vendors.

Samsung Display hopes to become the “No. 1 Global Display Manufacturer” in its own right, building on its 21 years experience in the industry.

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