The board of directors of Samsung Electronics has decided on Monday to spin off the company’s LCD (liquid crystal display) panel manufacturing unit. Samsung has been given the go-ahead to form the LCD television business as Samsung Display.
The new company, provisionally named Samsung Display Co. will be launched on April 1, and will have an investment of 750 billion won (US$665 million) in capital, the company said. Samsung’s decision comes as it and its competitors are struggling with slow demand and falling profits in the LCD business.
The new structure will give the LCD panel business the ability to take business decisions quickly and respond to clients’ needs more swiftly, Samsung said in a statement. The move will still require approval from the company’s shareholders in March.
Samsung‘s LCD business head Donggun Park said, “The spin-off will allow us to make quicker business decisions and respond to our clients’ needs more swiftly. Through enhancements in business competitiveness, we will continue to provide superior products and services for the market.”