Samsung Electronics’ Board of Directors has approved the separation of LCD businesses and operations. The separated corporation will be launched by the company as Samsung Display Company Ltd. on 1 April. This new corporation will be started with a capital of 750 billion won ($668 million).
Although, the company has come closer to the separation of the company as a new entity after board’s approval but it still needs the approval of shareholders.
The company has taken this decision as the demand of LCD products is decreasing in this era of fast technological progresses and the company wants to keep in pace with new advancements. Moreover, the supply of LCD products has also been increased by manufacturers.
Samsung is the largest TV and flat screen manufacturer and the deceleration of the sale of LCD products could affect the company most. So, the company has planned to focus on the new technologies such as Organic Light Emitting Diode (OLED) to maintain competitiveness.
"The spin-off will allow us to make quicker business decisions and respond to our clients' needs more swiftly," said Donggun Park, executive vice president and head of Samsung's LCD business.
"Through enhancements in business competitiveness, we will continue to provide superior products and services for the market," he added.
Time will tell that this strategy of Samsung for increasing competency and operations will work or not.