Samsung Is Pouring $11 Billion Into Next-Generation Displays

Samsung Is Pouring $11 Billion Into Next-Generation Displays

Samsung Display Unit will build a quantum-dot display production line in Asan.

Samsung Display plans to spend KRW 13.1 trillion ($ 11 billion) and develop and manufacture the next-generation display, facing supply and price pressures from fast-growing Chinese rivals.

In the event announced by South Korean President Moon Jae-in and Samsung Electronics Vice President Jay Lee, the investment was presented as a step to restructure the display industry while maintaining Samsung's global leadership and Korea's established dominance went. 

Moon said the government would invest KRW 400 billion in next-generation displays.

The Samsung unit will build a quantum-dot display production line in Asan, which will start operations in 2021, with an initial monthly capacity of 30,000 panels larger than 65 inches, according to a company statement.

 The company said that production would be spread by 2025 with plans for long-term development. The investment will help create 81,000 jobs.

Samsung and cross-town rival LG Display are grappling with increased competition from Chinese suppliers such as BOE Technology Group, which have increased liquid crystal display-making capacity in recent years and are rapidly entering the next generation of screens Huh.

 For the decline in margins and loss of customers, Samsung is moving ahead with the development of quantum-dot displays. Its stock remained largely unchanged on Thursday.

Samsung's heir and de-facto leader Lee has promised to invest for the long term in the display business, one of three main pillars with a memory chip and smartphone - with the Korean tech champion being the world leader. 

The company is placing huge bets on the market as the business environment continues to deteriorate and a business environment between Korea and Japan creates uncertainty around the supply of chemicals and components needed to manufacture advanced performance.

 This week, Samsung reported a quarterly profit decline of more than 50 percent, though it was less than the anticipated decline.

Korea's largest company is the world's leading manufacturer of high-margin OLED displays, but it became a bottleneck last year when Apple's orders deteriorated more than expected on the iPhone XS max.

 It remains to be seen how important the new iPhone 11 Pro models will be to consumers.

Away from the display, unpredictability around tensions between the US and China - where Samsung earns a large share of revenue - has led to a slowdown in the chip industry when smartphone demand shuts down and data center speeds decline.