Samsung investing $11bn in state-of-the-art quantum dot displays
Samsung moving away from LCD production to stay ahead of Chinese rivals
By 2025, Samsung Display will invest ₩13.1 trillion ($11 trillion) in the production and further development of quantum dot displays as Samsung battles to stay ahead of rivals in China, who already have taken advantage of previous display technologies.
Samsung said Thursday that it would take advantage of the investment to move its large size panel output from cheaper liquid crystal displays to more sophisticated QD based on the organic lighting diode, or OLED, technology.
“Quantum dots are semiconductor particles which illuminate close to natural colours. It is the future growth vision of the large display industry,” said Samsung Display CEO Lee Dong-hoon.
The news comes as LCD prices have plunged in recent years, owing to Chinese manufacturers funded by generous state grants and the aggressive expansion of production capacity. Low demand for large-scale TV sets has also impacted costs in the wake of the global economic downturn and the US-China trade war.
China has emerged as a significant force in LCD development of the late century. National BOE Technology Display Champion started operating the first 10.5 generation LCD facility in 2017. In April last year, the company started construction of its second plant, with production scheduled to begin next year.
Samsung said the latest QD 8.5-generation lines would deliver from 2021 30,000 panels per month for producing super-large 65-inch QD displays or more. To accelerate the project, the 8th generation LCD lines will slowly be converted into QD lines.
South Korea’s Minister of Commerce, Industry and Energy announced that Samsung is going to invest 10 trillion of money won into QD facilities, while the remaining 3.1 trillion will be used for technology development.
“This year, with Samsung Display investments and LG Display revealing, in July, its investment of ₩7 trillion, we expect our businesses to improve their leading position in the global markets by retaining super-lacks in the display industry,” the Ministry said in a statement.