Board of Directors from Samsung Electronics has approved the spin-off of Liquid Crystal Display (LCD) businesses and operations. The company has announced that it will launch the separated unit as Samsung Display Company Ltd. as a new corporation on April 1, 2012, with a capital of 750 billion won ($668 million).
[hana-code-insert name=’StumbleUpon’ /] [hana-code-insert name=’Reddit’ /] Although the Board of Directors has approved the spin-off but it still needs the approval of shareholders.
The demands of LCD products are falling in this era of fast technological advancements and all the manufacturers of LCD products are facing hard time as there is an increased supply of these products to the costumers.
Samsung is the largest TV and flat screen maker, and can be affected the most by the deceleration in this area.
The company has also planned to focus more on the new technologies, such as Organic Light Emitting Diode (OLED) technologies, to maintain competitiveness.
“The spin-off will allow us to make quicker business decisions and respond to our clients’ needs more swiftly,” said Donggun Park, executive vice president and head of Samsung’s LCD business.
“Through enhancements in business competitiveness, we will continue to provide superior products and services for the market,” he added.