Samsung today confirmed that it’s finally spun off its struggling Samsung Display division away from the main company. Samsung Display is now officially set up as a 20,000-employee business under the Samsung sun.
The new subsidiary will be merged with the Samsung Mobile Display division responsible for the development of OLED displays, widely deployed in mobile devices like smartphones and tablets. The division between LCD and OLED teams will be kept in the newly formed unit.
The Samsung Display unit had huge sales of nearly $20.1 billion, but it couldn’t translate them into profits. The display division lost some $665 million in 2011 on declining TV sales and low margins.
Samsung fully owns the Samsung Display unit and has the majority stake in the mobile display division, so there are no constraints for the merger to happen. The newly found company will become Korea’s second biggest in terms of overall sales.
+- Press Release
The World’s Largest Display Manufacturer, Samsung Display is Launched
SEOUL, Korea – April 2, 2012 – Samsung Display Co., Ltd, a global leader in display panel technologies and products, announced today that it has been officially launched as a new corporation, spun off from Samsung Electronics. Samsung Display held its inauguration ceremony today and will begin business operations in earnest after carrying out incorporation registration on April 3.
Donggun Park, executive vice president and head of the former Samsung Electronics’ LCD Business was elected CEO of Samsung Display. The company, which recorded 22.7 trillion KRW (approximately 20 billion U.S. dollars) in annual revenue in 2011 as Samsung Electronics’ LCD Business, became the world’s largest display manufacturer overnight, based on its 20,000 employees and five production facilities worldwide.
Park said at the inauguration ceremony, “We will make Samsung Display a well-respected company through continuous efforts to supply a wide variety of customized products that provide great value to our customers.” He added, “By continually staying one step ahead of our competitors, we can make our company the very best in the display market.”
More than 350 employees attended the inauguration ceremony. At the inauguration, many reflected on the success of Samsung Electronics’ LCD Business over the past 21 years and expressed a widespread determination to once again become ‘The No. 1 Global Display Manufacturer’.
Samsung Display began as an R&D arm of Samsung Electronics in 1991 and has developed and released some of the world’s most creative and innovative displays for two decades. Now, as a separate corporation, it will respond to rapidly changing market conditions more efficiently, while providing timely, well-differentiated products and services this year and well into the future.