Due to declining demand for LCD panels and increasing competition from Chinese display manufacturers, Samsung subsidiary Samsung Display is reportedly considering exiting the display market. According to earlier reports, the company wanted to stop all production of LCD panels by the end of last year, but postponed its plans for some time at the request of Samsung's most important subsidiary Samsung Electronics. It now appears that it will continue to manufacture LCD displays for the foreseeable future.
Samsung Electronics made the request because it saw an increase in demand for monitors and TVs. Demand was mainly driven by people who had to spend more time at home due to the coronavirus pandemic. If Samsung Display stopped the production of LCD panels, Samsung Electronics would have to procure them from LG.
Samsung Display will now continue the production of LCD displays. Company boss Joo-sun Choi sent an email to management confirming that Samsung Display is considering expanding production of large LCD panels by the end of next year.
Last year's increase in demand for these displays also caused their prices to rise. If Samsung Electronics were to outsource them, it would probably cost more. By continuing to rely on its integrated supply chain, it can meet this demand more efficiently.
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