LONDON – The board of directors of South Korean electronics giant Samsung Electronics Co. Ltd. has approved a plan to spin-off its LCD business. The plan is expected to receive shareholder approval at a meeting scheduled for March 16.
As a result the LCD business will become a wholly-owned subsidiary of Samsung Electronics with effect from April 1, 2012. Samsung will then consider various restructuring measures including a merger with Samsung Mobile Display and S-LCD Corp., Samsung said.
It is expected that the LCD business will attempt to focus on particular niche applications while OLED displays within Samsung will be used for the mass market of consumer applications.
OLED is an emissive display that works without a backlight. It has a wider viewing angle that LCD and can be thinner and lighter than LCD. Until recently LCD maturity meant it had cost advantages at larger sizes and OLED has a shorter operational life than LCD.
In a statement Samsung said: "Currently, the display market is undergoing rapid changes with OLED panels expected to fast replace LCD panels to become the mainstream. Amid this structural change of the display industry, adopting measures for change and innovation, including business restructuring, are essential to improve our competiveness for our display business."
Samsung did not indicate how many employees would be impacted by the change. Samsung said that, in principle, the new [subsidiary] corporation will pick up all employment contracts and relevant legal responsibilities including severance pay, pertaining to all the current employees.Related links and articles:
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