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Samsung Display considers suspending output at South Korean LCD plant amid supply glut
[SEOUL] South Korean panel maker Samsung Display said on Friday it is considering suspending one of its liquid crystal display (LCD) production lines at home due to a supply glut.
Samsung Display, a unit of Samsung Electronics Co Ltd, currently operates two LCD production lines in South Korea and one in China.
"Samsung Display has been adjusting the production output and facility operation due to oversupply and worsening profitability, and we are still considering the suspension of the line, but nothing has been decided," the company said in a statement.
Rising competition from Chinese rivals, a shift to more advanced OLED (organic light emitting diode) panels and slowing demand for smartphones have led to falling offtake and weak prices of LCD panels for South Korean display makers.
Samsung Display's cross-town rival LG Display Co Ltd converted one of its LCD production lines to an OLED (organic light emitting diode) production line, a path that Samsung Display may also take.
LG Display is also considering various scenarios for its remaining LCD production line in South Korea, said LG Display chief financial officer Suh Dong-hee at an earnings briefing last month.
Prices for LG Display's main product, 50-inch TV LCDs, slid as much as 7.5 per cent in April-June versus the same period last year, data from WitsView, which is part of research provider TrendForce, showed.