Samsung Display's decision to extend LCD production in South
Korea for an unspecified period of time overrides its announcement in March
that it would end all production by the end of the year to focus on more
advanced technology.
Samsung Display said the length of the extension would
depend on market conditions. It had said in late October that it was
considering a "short-term" extension.
Local media outlet IT Chosun reported earlier on Tuesday
that production would be extended by a year at the request of Samsung
Electronics' set manufacturing division, citing unnamed tech industry sources.
A spokeswoman for Samsung Display declined to comment on the
IT Chosun report.
The stay-at-home trend sparked by the coronavirus pandemic
led to a 30 percent quarter-on-quarter spike in global panel demand in the
third quarter of the year amid more TV and notebook demand, according to
technology research firm TrendForce.
However, the firm added that the influx of more production
capacities from Chinese LCD makers was likely to worsen a supply glut next
year.
Samsung had produced LCD panels in both South Korea and
China, but it earlier this year sold a majority stake in its Suzhou LCD
production unit to TCL's China Star Optoelectronics Technology unit.
© Reuters
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