South Korea’s President Moon Jae-in(center), Samsung Group`s leader, Jay Y. Lee (second from right), during an event held at Samsung Display"s factory in Asan, South Chungcheong Province, on Oct. 10, 2019. [Photo by Yonhap]
Samsung Display will spend 13.1 trillion won ($11 billion) by 2025 in display operation to ensure leadership in next-generation panel market, with the government pledging full support.
The vision on display operation starting with budgeting 111.3 billion won next year, more than tripled from this year, was announced by Samsung Electronics Vice Chairman and the group’s de facto leader Jay Y. Lee at an event promising closer ties with the domestic supply chain, where President Moon Jae-in dropped in to demonstrate government blessing and backing.
The panel maker will upgrade the L8 lines in Asan fab to produce Samsung’s proprietary quantum-dot displays with an initial monthly capacity of 30,000 panels larger than 65 inches. Production will scale up over time. The Q1 line capex investment will total 10 trillion won by 2025 with the remaining 3.1 trillion won for technology development. The investment will help create 81,000 jobs except new hires for the next five years, the company said.
Samsung Display has maintained a dominant position in the global OLED market for smartphone displays, but lags behind LG Electronics and Chinese competition in big screens.
Its huge investment into next-gen QOLED TV panels may be a game changer.
Samsung Group vowed to support its material and component suppliers in the display industry as a win-win strategy, while expanding its partnership with local companies to secure production technology related to inkjet printing facilities and new materials and building a research center with local universities.
Samsung Display`s factory in Asan
President Moon said the display industry is a backbone of Korea`s manufacturing innovation, adding Samsung’s agreements with material, component and equipment suppliers will be an important momentum to boost self-sufficiency in the country’s material and component sector, which is heavily dependent on imported products. President Moon and Vice Chairman Lee have so far met seven times this year. Moon has visited Samsung’s manufacturing sites three times.
By Kim Gyu-sik and Minu Kim
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