samsung display to invest $3.6 billion in new oled production line
Samsung Display plans to invest 4 trillion won ($3. 6 billion)
Manufacturing organic lightLEDs (OLED)
Samsung Electronics Co. , Ltd. , the parent company, is expected to boost parts sales to offset weak smartphone revenue.
A Samsung monitor spokesman told Reuters on Wednesday that the new production line will mainly produce small and medium-sized products.
Size OLED displays for consumer electronics such as smartphones and tablets.
The investment will take place from 2015 to 2017, but no further details will be provided, he added.
Analysts said the new line will initially produce curved panels like those on the Galaxy Note Edge, eventually helping to win external customers, as sales of the former cash cow smartphone business decline, these customers are critical to Samsung\'s future revenue growth.
According to recent data, Apple, the main competitor, caught up or surpassed Samsung in the fourth quarter to become the world\'s largest smartphone maker.
Oh Sang said: \"In the long run, I think it is possible for sales to expand to external customers.
Woo, an analyst at leading Investment Securities, added that these customers may include competitors seeking to catch up
By using a curved screen.
Samsung Electronics invests heavily in its parts business every year. Of 23.
Capital expenditure last year was 4 trillion won, 14.
The semiconductor business won 3 trillion won and the display business won 4 trillion won.
In addition to the planned OLED investment, Samsung is expected to start construction 15.
Some time in the first half of this year, South Korea has a chip factory of 6 trillion won.
The company said in October that the construction of the plant will be completed in the second half of 2017.
Such investment requirements may limit Samsung\'s return on capital.
A person directly familiar with the matter told Reuters on Tuesday that the company\'s total dividend spending of 2015 may fall from 2014.
South Korea\'s Yonhap news agency reported separately on Wednesday that LG Display Co. , Ltd. plans to invest 1 trillion won to 1 won.
2 trillion won this year to increase the capacity of existing large enterprises
Panel OLED production line.
LG Display declined to comment.