Samsung Display plans $11bn investment in South Korean LCD plant

Author: Reuters

SEOUL: Samsung Display plans to spend 13 trillion won ($11 billion) to upgrade a South Korean liquid crystal display (LCD) plant so it can manufacture more advanced screens, Yonhap news agency reported on Tuesday.

Samsung Display, a unit of Samsung Electronics Co. Ltd. and an Apple Inc. supplier, will announce the investment next month, Yonhap said, citing unidentified industry sources. It did not mention a timeframe for the investment.

A spokeswoman for Samsung Display, which operates two LCD production sites in South Korea and one in China, said nothing had been decided on its future investment plans.

South Korea’s panel makers have been struggling to cope amid slower LCD demand for TV and smartphones as well as rising competition from Chinese rivals and a shift by major clients to organic light emitting diode (OLED) panels.

In August, Samsung Display said it was looking at suspending one of its South Korean LCD production lines due to a supply glut.

LG Display last week announced a voluntary redundancy program for domestic production line employees amid mounting financial losses.

Samsung Electronics has said it spent 500 billion won on its display business during the April-June quarter.

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