Samsung Halts OLED TV Production Expansion, Turns Focus to Mobile Devices

Samsung abandoned an OLED fab expansion project because of yield rate issues and intense market competition, according to a Nikkei Asian Review report.

The South Korean company’s OLED TVs released on the U.S. market last year underperformed mainly, due to high price tags. The 55-inch OLED TV was initially priced at KRW 15 million (US $14,700).

Samsung has cancelled investments for a larger OLED manufacturing facility at its Tangjeong complex at the end of this year. 

OLED yield issues continue to pose a major problem for Samsung. An OLED info report noted this might be a sign that Samsung, is handing over the OLED market to LG for the time being, due to its inefficient OLED manufacturing technology. Samsung employs direct emission and LTPS method to make OLEDs, while LG relies on WRGB and Oxide-TFT method.

Instead of investing resources in the large sized OLED TV market, Samsung is considering of establishing a new facility to make small and midsized OELD panels for tablets or smartphones. 

The development will likely slow the popularization of OLEDs as a TV technology.

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