Accelerating QD Transition... Samsung Display Proceeds with Sale of Asan LCD Equipment

Samsung Display Asan Campus

[Asia Economy Reporter Jeong Hyunjin] Samsung Display is in the process of selling equipment from its LCD panel production lines in Asan, Chungnam. Although the complete withdrawal from the domestic LCD business has been delayed due to rising LCD prices, the company is proceeding with the exit from LCD and accelerating the transition to QD Display.

According to industry sources on the 12th, Samsung Display announced the sale of LCD panel production equipment from the Asan L7-2 line and L8-2-1 line earlier this month. Samsung Display plans to receive purchase applications until the end of this month and select a preferred negotiator by mid-next month. Samsung C&T is responsible for equipment dismantling and storage in Korea following the production line sale. A Samsung Display official said, "It is true that the sale is underway, but specific details cannot be confirmed."

Samsung Display decided to withdraw from the unprofitable LCD business in 2019 and has been reorganizing its production lines. The Asan 7-1 line has already been converted to an OLED production line, and part of the 8 line is preparing for QD Display production. The L7-2 and L8-2-1 production lines, whose equipment is now being sold, had already ceased operation. The LCD production line in Suzhou, China, was also sold to CSOT China.

However, Samsung Display plans to retain some domestic LCD production for the time being, as LCD prices have risen rapidly since the second half of last year, necessitating a response. According to market research firm Omdia, the price of a 32-inch LCD panel rose from $38 in March last year to $77 in March this year. Accordingly, Samsung Display initially planned to end LCD panel production in March but is expected to maintain it until the end of this year. Samsung Display's LCD production capacity has decreased from 170,000 units per month in 2019 to 80,000 units per month.

Currently, Samsung Display's equipment is expected to be sold to China, which dominates the LCD panel market. China's share of the global LCD TV panel market is projected to reach 60.7% this year. Chinese display companies such as BOE, CSOT, and HKC have rapidly grown with government funding support, surpassing Korea to become the world leader in market share since 2017.

Samsung Display is accelerating the transition to QD Display with the goal of mass-producing QD Displays within this year. The related equipment was brought into the Asan plant in July last year, and pilot production began in December of the same year. To facilitate the QD transition, Samsung Display announced plans to invest 13.1 trillion won in 2019.

This content was produced with the assistance of AI translation services.