Oversupply Samsung Display Plans To Suspend Korean LCD Panel Production Line

- Jan 15, 2020-

It is reported that South Korean panel maker Samsung Display said recently that it is considering suspending one of its LCD panel production lines in South Korea due to oversupply.

Samsung Display, a subsidiary of Samsung Electronics, currently operates two LCD panel production lines, one in South Korea and one in China.

In a statement, Samsung Display said: "Samsung Display has been adjusting production and equipment operations due to oversupply and weakening profitability. The company is still considering suspending production lines but has not made any decisions."

Increasing competition from Chinese competitors, the shift to more advanced OLED (organic light-emitting diode) panels, and slowing demand for smartphones and TVs have led to falling prices for LCD panels from South Korean display manufacturers.

LG Display, one of Samsung ’s display competitors, has also transformed one of its LCD production lines into an OLED production line. Cape Investment & Securities analysts said Samsung showed that it might take similar steps.

LG Display ’s chief financial officer Suh Dong-hee said at last month ’s earnings conference that LG Display is also considering various conditions for its other LCD production lines in South Korea.

According to data from WitsView, the price of 50-inch LCD monitors, which are LG Display ’s main products, also fell by nearly 7.5% year-on-year between April and June this year.

Market research agency IHS Markit said that due to high inventory, some Chinese panel manufacturers even began to adjust production, but the prices of TV panels continued to plummet.