Samsung’s display business has decided to end all production of its LCD display panels by the end of the year, reports Reuters.
This follows an announcement in October 2019 that the company was shutting down two LCD production lines due to decreasing demand and excessive supply.
Samsung confirmed it will not suffer any issues in supplying LCD displays that have already been ordered.
“We will supply ordered LCDs to our customers by the end of this year without any issues,” said Samsung.
It is unclear at this point whether Samsung will purchase LCD panels from other suppliers for certain products following 2020, or if it will stop shipping products that use this technology altogether.
Moving to new technologies
In the same announcement, Samsung confirmed that it would invest about $11 billion into quantum dot technology.
It explained that it would implement a five-year plan to transition its LCD production resources into quantum dot production lines.
Technologies such as QLED and OLED have risen drastically in popularity in recent years as they offer better image quality than standard LCD displays.
Following in LG’s footsteps
Samsung’s announcement follows a similar decision by LG earlier this year where it said it would stop domestic production of all LCD TV panels by the end of 2020.
“We will be wrapping up our LCD TV production in South Korea by end of this year and focusing on our LCD TV production in China,” said LG CEO Jeong Ho-young .
The company’s LCD TV businesses had accounted for 32% of the company’s revenue over the July to September quarter – down from 41% from the quarter prior.
LG added that it was planning to prioritise OLED technology, and expected the technology to account for half of its revenue by 2021.
However, the company does not plan on transitioning its LCD production lines to making OLED panels.