Samsung panel will merge three companies in July to focus on OLED

Clear OLED dominance

Among the three panel companies Samsung currently owns, Samsung SMD is the only profitable company with a small-size OLED technology. According to the research and analysis of Qunzhi Consulting, once the three panels are merged, the Samsung panel can improve the current loss of the Samsung panel. It can also be integrated through the new line body to extend the emerging OLED panel technology from small size to large size. The future of OLED on the dominance. It is reported that Samsung has begun to build a AMOLED8 generation line with a monthly capacity of 6,000 glass substrates.

According to Samsung's public data, the total loss of the LCD division in 2011 reached 750 billion won. It is precisely the dilemma of sustained losses every quarter last year. Samsung has been adjusting the panel companies internally. In February of this year, the loss-making LCD panel business was independently established as a subsidiary.

The adjustment of Samsung's panel architecture is to make it no longer drag on Samsung Electronics Group due to its performance, which is a glimpse from Samsung's first quarter earnings report. The first quarter earnings report released by Samsung Electronics showed that its domestic and overseas sales totaled 45.27 trillion won (about 250 billion yuan), and its operating profit was 5.85 trillion won. Compared with the same period last year, sales in the first quarter increased by 22.4%. Profits soared by 98.42%.

At present, more than 50% of Samsung's panels are purchased internally. It is estimated that the proportion of purchases this year will still be about 53%. After the merger of Samsung's three companies, the expansion of the proportion of outward purchases will be reflected in the next year.

Internal and external challenges

Industry insiders analyzed that the integration of Samsung panels will be challenged internally and externally. From Samsung's internal point of view, Samsung SMD only has the technical advantages of OLED small size. Samsung S-LCD and Samsung LCD independent departments have experience in large-size LCD, how to transplant the technical advantages of the former and the latter two companies, including production capacity. Merging and optimizing, and then achieving full control of small-size to large-size OLED technology is a problem facing Samsung; in addition, the merger of the three companies will directly face the adjustment of the staff structure, which also requires a period of break-in period.

From the outside, domestic and foreign panel companies began a new round of competition in the OLED panel. It is understood that since Sony withdrew all the shares of S-LCD jointly established with Samsung, and established an OLED panel joint venture factory with AUO; Panasonic It plans to invest 20 billion to 30 billion yen to establish a 5-6th generation OLED panel trial production line; LGD plans to build an AMOLED 8th generation line with a monthly capacity of 8,000 glass substrates. In China's panel companies BOE, Tianma, Huaxing Optoelectronics have invested and entered into OLED.