Samsung will invest 3.6 billion US dollars to build new OLED production line

On February 11, Reuters reported that South Korea's Samsung Group's LCD panel company Samsung Display plans to invest 4 trillion (million) won (about 3.6 billion US dollars) to build a new organic electroluminescent display (OLED) panel production line, because The parent company, Samsung Electronics, hopes to increase revenue from its parts business to compensate for the downturn in the smartphone business.
A Samsung Display spokesman said on Wednesday that the new line will produce small and medium-sized OLED displays for consumer electronics such as smartphones and tablets.
The spokesperson said that the investment spanned from 2015 to 2017, but no details were given.
Analysts believe that the new line will initially produce curved panels, such as those used in Galaxy Note Edge, which will ultimately help the company win external customers, which is critical to Samsung Electronics' future profitable growth.
“In the long run, I think there is hope for a broader range of sales to external customers,” said Oh Sang-woo, an analyst at Leading Investment & Securities, who said that these customers may include Samsung’s competitors, who are also seeking to introduce curved screen products. Catch up.
In addition to the OLED investment plan, Samsung is expected to start building a chip factory in South Korea with an investment of 15.6 trillion won in the first half of this year. The company said in October that the plant will be completed in the second half of 2017.
According to a report by South Korea’s Yonhap News Agency on Wednesday, LG Display plans to invest 1-1.2 trillion won this year to expand the capacity of its existing large-size OLED production line.
LG Display declined to comment.