Samsung Display has postponed, for the third time, its plans to end production of LCD panels, which would take place in March this year. In a new agreement, released by the website Korea IT News, the panel division of the South Korean company will extend its supply period for its liquid crystal displays until the end of 2021.
According to the original Samsung Display schedule, production would be discontinued at the end of 2020, but the outbreak of the pandemic ended up determining a higher demand for TV’s than originally planned. As Samsung Electronics needed more LCD panels, Display had to postpone plans to end production until March 2021.
How will the new agreement work?
The new agreement, personally signed by the presidents of the two companies, Han Jong-hee of Samsung Electronics and Choi Joo-seon of Samsung Display, will end up benefiting both parties, as it will continue to produce the LCD panels that Electronics currently demands, and this division is committed to buying Display’s QD-LED panels from 2022.
QD-LED (Quantum Dot LED) technology has been a major point of disagreement between Samsung’s two divisions: Display wanted to start manufacturing the product in the first quarter of 2021, while Electronics is cautious about adopting these panels because of its high production cost when compared to OLED technology, already used in its TV’s.
However, with the commitment made by Samsung Display to guarantee the supply of LCD panels, Samsung Electronics will use this time to increase the capacity of its QD-LED production lines. The prospect now is that the electronics division could launch the first QD-LED-based smart TV in early 2022.