Samsung Is Pouring $11 Billion Into Next-Generation Displays

 Samsung Is Pouring $11 Billion Into Next-Generation Displays


Samsung Display plans to spend KRW 13.1 trillion ($11 billion) developing and building next-generation displays, responding to a flood of supply and price pressure from fast-moving Chinese rivals.

In an announcement event attended by South Korean President Moon Jae-in and Samsung Electronics Vice-Chairman Jay Lee, the investment was presented as a move to reorganize the display industry while maintaining Samsung's global lead and Korea's established dominance. The government will invest about KRW 400 billion into next-generation displays to propel that objective, Moon said.

The Samsung unit will build a quantum-dot display production line in Asan, according to a company statement, which will begin operations from 2021 with an initial monthly capacity of 30,000 panels larger than 65 inches. Production will then scale up from there, with a long-term development plan that stretches out to 2025. The investment will help create 81,000 jobs, the company added.

Samsung and cross-town rival LG Display are grappling with a surge of competition from Chinese suppliers, such as BOE Technology Group, which in recent years have ramped up liquid crystal display-making capacity and are increasingly making inroads into next-generation screens. To offset a decline in margins and loss of clients, Samsung is moving forward with development of quantum-dot displays. Its stock ended Thursday largely unchanged.