FILE PHOTO: the new logo can be seen on a laptop computer displayed in Seoul, south korea, south africa, South Korea, July 6, 2012. (REUTERS photo/Lee Jae-Won/Photo File
SEOUL (Reuters) – Apple Inc and a supplier for Samsung Display said on Thursday it will invest 13.1 billion won ($11 billion) on facilities and research in order to upgrade a production line, as it battles a severe oversupply, weak global demand for smartphones and Tvs.
The unit of Samsung Electronics Co. Ltd., said that by the year 2025, it will spend 10 billion won in the facilities, and the remainder for research and development to produce more advanced displays.
The investment announcement comes at a time when South Korea’s panel makers are struggling to cope with the slow, liquid crystal display (LCD), the demand for TVS and smartphones, as they face increasing competition from Chinese rivals and a shift away from big customers, to the organic light-emitting diode (OLED) panels.
The $11 billion in spending over the next five years will be focused on the conversion of one of South korea’s LCD lines, the possibility of the mass production of more advanced “quantum dot” displays, Samsung Display, said in a statement.
Samsung has said that it is suspended and the LCD display on the production line this month.
“Our business is going to come out of the crisis, the large-scale display industry, through active investments,” he said.
The south Korean President, Moon Jae-in, and Samsung Electronics vice chairman Jay Y. Lee, the heir apparent of the Samsung Group conglomerate, who was present at the signature of the proposed investment on Thursday at a Samsung Display, the production site in the South Korean city of Asan, to the Presidential Blue House said.
It all started in the beginning of September, with a voluntary redundancy program for employees in the large-screen display of the commercial department of South Korea, a source with direct knowledge of the matter told Reuters previously.
Reporting by Ju-min Park; Editing by Tom Hogue and Muralikumar Anantharaman