Samsung Display to invest $11 billion by 2025 amid market oversupply
The world’s greatest tech giant Samsung Display said on Thursday it will invest about 13.1 trillion won on different facilities as well as distinct research in order to upgrade a production line because it battles severe oversupply as weak global demand for smartphones and TVs.
The special unit of Samsung Electronics Co Ltd stated that by the end of 2025 it will about to spend 10 trillion won on facilities and the remaining on research as well as development to develop more advanced display screens. The expenditure declaration comes at a time when the panel makers of South Korea have been struggling to cope up with lower liquid crystal display (LCD) demand for TV as well as smartphones and growing competition from Chinese competitors and a shift by key clients to organic light-emitting diode (OLED) panels.
Furthermore, Samsung Display said in a statement that, the $11 billion spendings for the next 5 years will be completely focused on converting one of its South Korean LCD lines into major manufacture extremely advanced quantum dot screens. The company had said that it suspended the LCD production line previous month.
Reportedly, the firm runs six display manufacturing lines along with once LCD line in China. It is also said that the company plans to overcome the problem of the large-scale display market using active investments.
The president of South Korea, Moon Jae-in and the vice chairman of Samsung Electronics Jay Y. Lee heir to the Samsung Group combination, attend a function for the proposed expenditure on Thursday at the manufacturing plant of Samsung Display in the Asan, South Korea.
Samsung plans to start operation of its newly upgraded production of the quantum dot from the year 2021 along with a monthly capacity of 30,000 sheets, as stated by the firm. Early September, it launched a voluntary redundancy program for employees at its large display business department in South Korea.