Samsung Display will be increasing its shipment of LCD monitor panels by up to 40% on-year despite shutting down most of its LCD panel lines, according to industry sources and market research firm Omdia on May 14.
The decision comes based on market research showing a spike in demand for monitors for on-line games amid the coronavirus pandemic. In total, Samsung Display is expected to ship up to 22.9 million LCD screens for monitors, which would reflect a 38.8% increase from 2019.
In contrast, the display maker would be slashing production of LCD panels for TVs by up to 43.4% to 18.3 million units. This was due to delays and the canceling of sporting events such as the Olympics and Euro 2020. Research has already shown that TV makers will be purchasing 15% less of LCD panels in the second quarter.
In 2019, Samsung Display had accounted for 11% of the global LCD TV and monitor markets, respectively. On the other hand, Chinese makers such as BOE, CSOT, HKC and CEC Panda have been seeing a rise in sales, especially since LG Display – another global leader in LCDs – will also be halting the supply of LCD panels for TVs by the end of this year.
Samsung Display’s key LCD TV panel clients include Samsung Electronics, Sony, TCL, Hisense, Haier, TPV and others. Its monitors are supplied to mostly Samsung Electronics, Dell, HP, Lenovo and others.
Despite plans to shut down LCD operations this year, the company may have to run its plant in Suzhou of China up until the first quarter of 2021 due to the terms of contract with the Chinese government. The Suzhou provincial government holds a 30% stake in the Samsung Suzhou LCD. COST holds another 10%, indicating it may purchase the plant.
Samsung Display decided in April this year to shutter all of its LCD businesses. In Korea, its LCD lines are to be turned into those for producing small-sized OLEDs and QD panels.
The Elec is South Korea’s No.1 tech news platform.