A report out of Korea claims that Samsung Display has spun off its OLED business as part of group-wide efforts by Samsung to restructure unprofitable businesses. An official familiar with the issue cited in the report says that the company has separated its OLED business division and more of Samsung Display’s workforce has joined the new OLED business unit.
Samsung has already been reducing its reliance on LCD, it’s gradually shutting down LCD production lines and even converting some to OLED production lines. The official says that Samsung Display’s decision to separate the OLED and LCD businesses means that the latter’s future is now further in danger. Samsung is believed to be implementing its exit strategy for LCDs as they are no longer promising and have become unprofitable. While a spokesman for Samsung Display said that the company is trying to find ways to offset weak demand for LCD displays he declined to comment on whether Samsung is going to make an official announcement about separating its OLED and LED businesses.
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