Samsung will dissolve its unprofitable LCD division to focus on new thinner, brighter TVs. No, it’s not a joke. As a matter of fact, this is a big step forward for Samsung, the world’s largest maker of flat panels.
Although a decision on the LCD business was not expected for three months, Samsung announced it would drop the LCD division and create a new company called Samsung Display Co. on April 1, according to Bloomberg. The new company will have paid-in capital of $668 million (which is close to Samsung’s 2011 LCD business operating loss).
The spinoff may merge with Samsung Mobile Display and the recently acquired S-LCD Corporation. By doing that, Samsung would “(prepare) to meet growing demand for the new technology” by shifting to OLED production.
Samsung appears to have big plans for consumers in 2012. It previously announced it would spend 6.6 trillion won on its display business. With this new direction, we’re likely to see thinner and brighter TVs like OLED flow into the market in the next months.