Samsung Display and LG Display, the two South Korean technology behemoths, announced plans earlier this year to stop the production of LCDs by the end of 2020. The announcements first appeared in Reuters’ reports and aim to consolidate the two companies’ lead in organic light emitting diode (OLED) panels, while conceding to Chinese manufacturers who have aggressively expanded their LCD productions. LCD prices have slumped over the years, as Chinese manufacturers backed by state subsidies have aggressively expanded production capacities. The plunging LCD prices have widened the operating losses at both Samsung and LG Display and finally led to the decision to cut production by year’s end.
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