Samsung spins off display unit -- already world's biggest
The display business is a tough one. And now, Samsung has made a move to shake it from the books.
Samsung Display Co. has officially been spun off from Samsung Electronics and has become new corporation, the technology giant announced today. Samsung Display plans to start operating as an independent entity later this week after it completes its incorporation.
It didn't take long for Samsung Display to set a record. In a statement today, the company said that its 20,000 employees and five production facilities worldwide make it the world's largest display manufacturer. And its $20 billion in annual revenue makes it a financial juggernaut.
Although Samsung won't explicitly say so, the display operation apparently was becoming a financial drain. During Samsung's 2011 fiscal year, its display business lost about $666 million. The rest of the company's operation was profitable, making that unit a potentially easy choice to spin off the business.
Samsung Display will be charged with producing LCDs. Samsung's LED line is still under the supervision of the main company. However, according to a report out of Korea from a site called Hankyung, Samsung plans to merge its Mobile Display unit, which handles OLEDs, with Samsung Display on July 1.
Samsung did not immediately respond to CNET's request for comment.