April 27, 2024

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[ET NEWS] The display-making subsidiaries of Samsung and LG have rescinded their respective plans to stop operating outdated liquid-crystal display manufacturing lines to address Samsung Electronics’ panel shortage, according to sources on April 14.

Samsung Display and LG Display may also reportedly push behind the schedule for switching some of the lines to manufacture organic light-emitting diode panels. 

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In 2016, the two Korean firms had planned to shut down older lines for LCD panels. LG Display had initially planned to close its three LCD manufacturing lines -- P2 for 3.5-generation, P3 for fourth-generation and P4 for fifth-generation -- in Gumi, North Gyeongsang Province.

Samsung Display wanted to close three lines this year -- L6-1, L6-2 for sixth-generation and L7-1, L7-2 for the seventh-generation. It was even said to be in talks with companies that disassemble and sell heavy equipment. There was also speculation that the firm was looking to sell the sixth-generation LCD lines to a Chinese display maker.

However, a fallout between Sharp-Foxconn joint venture, Sakai Display Products, and Samsung Electronics in end-2016 triggered a supply shortage for the Korean tech giant.

Taiwan's Foxconn had acquired Japan’s Sharp earlier in the year and formed the display-making JV.

Sakai abruptly stopped supplying LCDs to Samsung Electronics to focus on its own television venture.

Samsung Electronics was afterward forced to tap LG Display for LCD supplies in addition to its own affiliate.

“We previously expected the LCD supply shortage to ease in the second quarter, but it appears that the issue remains unresolved,” said an LG Display official.


By Bae Ok-jin (withok@etnews.com) (wone0102@heraldcorp.com)
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