Samsung Display has announced plans to invest 13.1 trillion won (~$11 billion) by 2025 in R&D and for upgrading facilities. The company made the announcement at a special event that was attended by the Korean President Moon Jae-in and Samsung Electronics Vice-Chairman Jay Y Lee in the city of Asan in South Korea.
Of the total proposed investment, 10 trillion won (~$8.4 billion) will be spent on upgrading facilities, while the rest will go towards developing next-generation displays such as the Quantum Dot LEDs. The company will be converting one of its LCD manufacturing lines in Asan to produce Quantum Dot screens from 2021. The upgraded facility will have an initial monthly capacity of 30,000 panels larger than 65 inches, the company said in a statement.
The Korean conglomerate’s display business has suffered in recent quarters due to oversupply of LCD panels and the resultant pressure on margins in the global market, driven largely by the growth of competitive Chinese suppliers. Making matters worse, Apple, one of the biggest clients for Samsung Display, is looking to cut down its reliance on the Korean company for sourcing components.
Samsung is looking to overcome all these challenges through active investments in next-generation displays. The Korean government has also pledged support to Samsung and other local companies to retain their dominance in the global display market.
