Samsung Mobile Display to Open New Plant in South Korea
Samsung Mobile Display has announced their intention of opening a new plant next July in Seoul, South Korea in response to growing demand for their state-of-the-art screens for smartphones. The new facility will allow the company to increase monthly production of the screens from 3 million to 30 million.
The shortage of the screens has limited production in recent months of several high profile smartphones, including Verizon Wireless' Droid Incredible phone and Sprint Nextel's Evo 4g. Both phones are manufactured by HTC Corp. and use Samsung's active matrix organic light-emitting diode display, or AM-OLED, which are brighter and more energy efficient than screens made by other manufacturers.
HTC, meanwhile, in response to Samsung's production limitations, has turned to another company, Sony, and its new Super LCD technology for the screens on some of their newer phones. The lost business hasn't lessened Samsung's expectations, as the company expects the usage of their AM-OLED displays to increase by 35 times to 700 million units by 2015. The company says that the AM-OLED technology is finally making money for the company after costing millions in research and development over the last few years.
Samsung will spend over $2 billion to open the new plant in South Korea, which will primarily be used to manufacture the 3 inch displays. Samsung Mobile Dipsplay finds itself in the unique position of not only providing the screens for its own telephone manufacturing branc, Samsung Electronics, but several of its chief competitors.
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