Samsung Announced an Imminent Transition from LCD Display Panels to Quantum-Dot display system
Last year, Samsung announced $10.8 billion. This money went into the production of improved displayed panels.
A halt followed this move in the manufacture of LCD panels.
Plans are set in motion to transport necessary equipment for the production of quantum-dot displays. The intended site for these activities is Samsung’s plant. The plant is situated in Asia around the South Korean province of Seoul.
Samsung Display is to complete production as 2020 winds down. Samsung’s test operations will begin early next year. This procedure will go on in phases. Samsung Display announced US$10.8 billion as an investment in improved display plants.
Following a Q1 report in 2020, Samsung Display topped the market charts of smartphones that generated a 52 percent increase in shares. Next on the list is Tianma Microelectronics and BOE Technology.
Samsung retains its top position in the smartphone display category. The production of high yield panels on a large scale contributes to this finding.
A decrease in demand for LCD panels
It won’t be out of place to say that economic factors such as the low demand for smartphones and TVs have led Samsung to stop its production. Reuters reports that the electronic giant might halt its production of LCDs. This prediction is likely to happen as 2020 winds off.
The Korea-based electronic guru has two of its production plants in Korea. Presently, operations have stopped at one of its manufacturing plants. When asked, Samsung pointed to the drop in demand as being the reason for this.
In October 2019, a considerable sum of money was invested in facilities and research. It will improve its production. Like most suppliers of LCD panels, Samsung has struggled with meeting up supplies despite the decrease in demands.
With looming challenges come innovation and creativity. To this effect, Samsung has invented various avenues to help with glass extinction. One of such is the sale of two outdated smartphone models in the market.
Furthermore, Samsung has established itself as a significant supplier of smartphone display panels for many companies. However, one interesting fact is that glass is a constituent of these display panels.
Nonetheless, talks have begun between Samsung’s mobile sector and producers of foldable-glass. Formerly, fragile glass came from Dowoo Insys. Though, Samsung acquired shares from Dowoo Insys in 2019.
Report of Samsung’s proposed plan to End Production of LCD by 2020
- The proposed halt in production has seen a drop in demand for LCD panels
- Samsung Display will ensure existing orders supplied before the end of the year 2020.
- The primary focus of Samsung Display will shift from LCD production to quantum-dot screen.
Quantum Dot Screens: The new norm
In a bid to boost production, Samsung threw its investments into research and facilities. LCD suppliers have struggled with satisfying customers despite global demand declines.
This investment should advance the production of quantum dot screens. There’s a full belief that these screens are an improved version of LCDs. However, quantum dot TVs have been on sale in India.
There was an increase in the sales of these TVs in the Indian market in 2019. With each year, a 15 percent increase noted, the highest ever reached. A significant contributor to this is smart 32-inch TVs.
TV makers pushed into reducing demands on Q2 panels
The raging coronavirus pandemic has affected various sectors negatively, including TV manufacturers. They are to reduce demands on panels. This development halts the plans of manufacturers who intended to improve purchases on display panels. These manufacturers play down their desires. Coronavirus concerns have caused an increase in a recession.
From the reports, Manufacturers in China and South Korea hoped to seize the opportunity of improvements in panel availability. This is a move to set their inventory and meet increasing demands.
There is an expectation for Top manufacturers of TVs in China to have a five percent increase in purchases of these panels in the second part of the year.