Samsung Display has decided to push back the deadline for withdrawing from the LCD panel market, bringing in more uncertainties to the supply and price outlook for the coming year.

Samsung Display’s decision comes as fellow company LG Display decided in October to delay by one year to the end of 2021 the planned closure of its LCD TV panel production lines amid rising panel demand and prices in the wake of the pandemic.

Samsung did not disclose a new timetable for its withdrawal from the LCD panel market, saying it will depend on market demand and the profits for producing such models, said the sources.

The Korean company is likely to roll out 4-5 million TV panels from its 7G and 8G lines in 2021, with those panels mostly to be consumed in house by Samsung Electronics, and therefore, the continued production by Samsung Display will have not much impact on overall TV panel supply in 2021, said industry sources.

However, the deferred closure of Samsung Display’s LCD panel lines may dim the prospects for China-based BOE Technology and China Star Optoelectronics Technology (CSOT) to land more LCD panel orders from Samsung Electronics in 2021, said the sources.

Samsung Electronics, already being the largest client of TV panels for BOE, would likely purchase more from the Chinese panel maker should Samsung Display shut its LCD panel production as scheduled.

CSOT reached a deal to take up the control of a Samsung Display’s 8.5G line in Suzhou recently and is hoping that the deal will translate into more panel orders for monitor applications from Samsung Electronics, indicated the sources.

While still maintaining LCD panel production, Samsung Display will continue its push into the QD-OLED panel segment as scheduled, expecting to roll out QD-OLED panels in first-half 2021, said the sources.


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