The South Korean tech giant, Samsung, is spinning away their LCD (liquid crystal display) panel manufacturing unit after its board of directors reached to this conclusion.
On 1st April the new company, provisionally called Samsung Display Co., will be unveiled. Samsung also disclosed that it will be investing 750 billion won (US$665 million) as capital amount to raise this new unit.
In an official statement, Samsung said that the latest structure will enable its LCD panel business to take quick decisions as well as respond swiftly to clients' demands. However, there is one crucial step still left before making the final decision, shareholder's approval, which will be procured in the month of March.
Last year, for five months the prices of the large size LCD panels kept on dropping, but, in the month of December the prices were stabilized. According to IHS iSuppli the reason behind this stability is low production and better than expected sales figure, reported PC World.
After witnessing decline in demands and falling profits in the LCD panel business Samsung had to take this decision. Even though LCD panels were in demand few years back, with the development of other better technology consumers are not attracted towards this technology any more.