Wants more flexibility in the display business
Samsung Electronics has spun off its formidable display unit into a new, separate company – Samsung Display Co.
There were rumours bubbling earlier this year that Samsung was to spin off its LCD business. According to industry whispers, Samsung had been worrying about how to turn around its TV business, as it suffered from poor sales and an enormous $891 million loss through 2011 alone. The shaky nature of the global economic condition played its role too. Regardless, it did bring in roughly $20 billion in total revenues.
In its official statement, Samsung glosses over these sticking points. At an inauguration ceremony, hundreds of employees showed up to pat the Korean industry giant on its back and congratulate themselves for raising the LCD business to becoming a top display manufacturer over the last 21 years.
Samsung believes that, as its own, separate corporation, the Display wing will be more flexible in adapting to changing market conditions. It will continue to provide “well-differentiated products and services this year and well into the future” – so, no sales here, then.
It looks like its 20,000 employees and five factories will continue business as usual, for now. Corporate registration should be complete 3 April.