Last week we reported on rumors that Samsung Electronics may spin off its LCD business, and today it is official - Samsung will form a new company (called Samsung Display, but it may be a temporary name) on April 1st. The new company will have over $6.5 billion in capital - which it will require as last year the LCD unit reported a loss of over $650 million.
In the beginning of February, Samsung Electronics reported that it is considering taking over Samsung Mobile Display. It's not clear what are SE's plans now, but it seems to be that the company is quickly shifting its focus to OLED displays. In the company's press release, Samsung makes the following rationalization:
"Currently, the display market is undergoing rapid changes with OLED panels expected to fast replace LCD panels to become the mainstream. Amid this structural change of the Display industry, adopting measures for change and innovation, including business restructuring, are essential to improve our competiveness for our Display business".