South Korean giant Samsung Electronics says its board has agreed to spin off its loss-making liquid crystal display (LCD) business.
Samsung, the world’s largest maker of flat panels, memory chipsand flat-screen televisions, said its LCD unit would be launched as a separate entity on April 1 with capital of 750 billion won ($668 million).
The LCD business suffered losses in every quarter last year due to a supply glut and cut-throat competition, but Samsung said in a statement the spin-off will help it streamline decision-making and manage resources more efficiently.
It “will allow us to make quicker business decisions and respond to our clients’ needs more swiftly”, said Park Dong-Gun, head of Samsung’s LCD business.
“Through enhancements in business competitiveness, we will continue to provide superior products and services for the market.”
Analysts have said the move would help Samsung invest further in profitable businesses such as smartphones, non-memory chips and next-generation panels.