Samsung to Split OLED Business?

There have been further unconfirmed reports that Samsung Display has decided to split its OLED panel unit from its LCD business and is also considering resuming production of large-format OLED panels for TVs. Rumours of the move first emerged in March (Rumour: Samsung to Spin-Off LCD, OLED Units).

According to a Nikkei report, the decision to spin-off the OLED business was a result of the managerial review of Samsung Display which began last November (Samsung Display to Review Management). A vice president will be appointed to head each unit who will be responsible for their overall operations, including production and marketing. Allocations of capital investment and research and development spending will be based on each unit’s earnings performance.

Samsung Display suspended production of large OLED TV panels more than a year ago because it failed to produce enough usable finished products. The company is now reported to be considering restarting production using a different panel structure which would improve the yield. (Is Samsung Looking at a Change in its OLED TV Plans?) Samsung Display will also attempt to supply small and medium sized panels to new customers, having already started selling to China’s Huawei.

In related news, Samsung Display is believed to be considering moving its LCD module (LCM) business out of South Korea to China or Vietnam where labour costs are lower. The company has been trying to adopt automated production lines for its LCM manufacturing business but development of related equipment has been difficult and working efficiency is still slower than manual labour.