According to foreign media reports, Samsung Electronics is considering various options to increase the market competitiveness of the LCD division, including the possibility of establishing the division as an independent company. The department's operating loss in 2011 exceeded 1 trillion won.
Samsung's LCD business is sluggish, on the one hand because competition from China hits the market at a lower price, and on the other hand, demand for LCD panels has fallen. Samsung Electronics publicly acknowledged that different options are being considered internally, but no decision has yet been made.
Before saying that it might reorganize the LCD division, Samsung just decided to end the LCD joint venture with Sony because the demand for flat-panel TVs in the world has fallen sharply. Analysts believe that Samsung Electronics may merge the better-profit OLED sector with the LCD division and update equipment for some LCD factories to convert OLEDs and expand the latter's capacity.
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