Reuters heard the surprising news that Samsung is considering to spin off its loss-making LCD flat-screen business. The move underscores the poor market conditions of the LCD market, and Samsung's desire to orient its TV business towards OLED.
Samsung Electronics Co said on Wednesday it was considering spinning off its loss-making LCD flat-screen business in a surprise move as it seeks to orient its components business towards OLED displays, touted as the next-generation technology that will replace LCD TVs.
The LCD industry has been mired in a slump since the second half of 2010 and looks set to become a low-growth commodity type technology with greater competition from low-cost Chinese manufacturers, according to industry studies.
Many analysts had expected Samsung would take full direct control of its OLED flat-screen business and merge it with the LCD operation to utilize part of LCD production capacity in making the more profitable new displays.