By Kim Yoo-chul
Staff Reporter
Samsung Electronics confirmed Tuesday that it was reviewing ways to strengthen its active-matrix organic light-emitting diode, or AM OLED, business.
``We are considering several ways to strengthen the competitiveness of our AM OLED business. Samsung will announce an official decision via The Korea Stock Exchange when the details are fixed,’’ Samsung said in a regulatory filing.
The company was responding to a request by the Korea Exchange earlier in the day that the company confirm speculation that it would combine its AM OLED division with that of Samsung SDI.
Insiders have told The Korea Times that it is highly likely that Samsung SDI, the sister company of Samsung Electronics, will set up a joint venture with Samsung Electronics for synergies in the highly-promising next-generation display business.
``As far as I know, such a blue-print was already fixed late last year by then key officials at the former strategic planning office,’’ a group source said.
``Also, SDI will hand over its sagging plasma display panel (PDP) business to Samsung Electronics and SDI will reborn as an energy-focused company,’’ another source said, adding the new name of the joint venture has internally been set as ``Samsung Mobile Display.’’
Samsung SDI has been suffering massive losses due to volatile PDP TV prices and the increasing cost of shutting down the unprofitable bulky cathode-ray tube TV business. The PDP business accounts for some 50 percent of SDI’s total revenue.
But Samsung added it hasn’t reached any decision on forming the joint venture with SDI in the AM OLED business.
``For the time being, nothing has yet been decided,’’ Samsung responded.
In a separate filing, Samsung SDI also responded that it has also been seeking ways to boost its AM OLED business, however, nothing has been decided.