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Samsung board approves LCD business spin-off
Reported by Dean Wilson on Monday, February 20 2012 11:31 pm
The board of directors at Samsung has approved a plan to spin off its ailing Liquid Crystal Display (LCD) business.
The board of directors at Samsung has approved a plan to spin off its ailing Liquid Crystal Display (LCD) business.
The Korean electronics giant plans to launch Samsung Display Company as a separate entity on 1 April, providing it is met with shareholder approval, which is likely not to be a problem given the financial difficulties of the LCD sector.
Falling demand and profits for LCD panels has had a huge affect on Samsung, particularly given the fact that it is the largest TV maker in the world. Market saturation and newer technologies have forced it to re-evaluate its position with LCDs.
"The spin-off will allow us to make quicker business decisions and respond to our clients' needs more swiftly," said Donggun Park, EVP and head of Samsung's LCD unit.
The move will allow Samsung to focus on its more successful business endeavours, such as smartphones and tablet computers. It said it plans to develop new technology to maintain its lead over competitors.
Source: BBC
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