Samsung Display's decision occurred six months earlier than projected, in large part as a result of substantial losses resulting from LCD pricing declines.

According to industry reports on Sunday, Samsung Display has decided to shut down its liquid-crystal display (LCD) business in June as a result of a shrinking worldwide competitive edge owing to lower-cost devices manufactured by Chinese and Taiwanese rivals.

Samsung Display's decision occurred six months earlier than projected, in large part as a result of substantial losses resulting from LCD pricing declines.

As reported by The Korean Times, Display Supply Chain Consultants (DSCC), a market research group in the United States, predicts that in September of this year, the average price index for LCD panels would decline to 36.6 versus 100. In April of this year, the figure fell to a new low of 41.5, and it is now 58% lower than the previous peak of 87, which was set in June of 2021.

As a result of its partnership with LCD panel manufacturers in China and Taiwan such as BOE Technology Group and AU Optronics Corp. (AUO), Samsung Electronics, the company that buys the most Samsung Display goods, was also taken into account.

Due to the rapid rise in LCD pricing during the COVID-19 pandemic in late 2020, the display affiliate's plan to shut its LCD business was postponed at the request of its parent firm, Samsung Electronics.

While LCDs will no longer be manufactured, Samsung Display will instead focus on producing organic light-emitting diodes (OLEDs) and quantum dot displays. Workers from LCD companies will be redirected to QD companies.

In 1991, Samsung Electronics established the display affiliate as an LCD business unit. Since its official introduction as Samsung Display in 2012, the company has combined with three local and Japanese AMOLED manufacturers to produce advanced varieties of displays.