Samsung Electronics considers spinning off its LCD display unit
Samsung is looking for solutions to its LCD display subsidiary and has announced that it is considering options for its spin-off into an independent business or a merger with the Mobile Display unit of the South Korean electronics giant.
The South Korean technology multinational Samsung Electronics has announced that it is studying the possible spin-off of its liquid crystal display division (LCD) in order to strengthen its competitiveness. “The company is considering the spin-off of the LCD business, although the details have not been decided”, Samsung Electronics said in a statement.
Losses for the fourth consecutive quarter of its LCD division in the period from October to December 2011, added to the crisis of the industry in the sector, they could be behind the decision, according to the local agency Yonhap, which also pointed to the possibility of a merger of Samsung LCD with Samsung Mobile Display. The latter is a joint venture owned by 50 percent by Samsung Electronics and its subsidiary Samsung SDI, which mainly produces organic light-emitting diode displays (OLED) for mobile devices such as smartphones.
After the rumors spread, later confirmed, on the possible decision of Samsung Electronics, The shares of the South Korean multinational on the Seoul Stock Exchange soared one 5,09 percent. On the contrary, your rival's actions LG Display they lost a 1,51 percent due to fears of increased competition in the segment.
Samsung Electronics and other South Korean display manufacturers are dedicating greater efforts to the production of OLED displays these days due to the growing demand for these devices..
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