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Samsung Combines Display & Semiconductor Businesses

According to the Wall Street Journal, Samsung will combine its flat-panel display and semiconductor businesses into a single unit. What’s the reason? Well, Samsung didn’t have too good of profits during its first quarter, and mediocre performance during its second quarter.

However, when you combine the two businesses, the semiconductor aspect of Samsung made up 70% of Samsung’s operating profits and 44% total of the company’s revenue. Those are some pretty impressive statistics, and allows its flat-panel display business to piggy back off the semiconductor manufacturing successes.

Samsung’s semiconductor president will also watch over both businesses and hopefully can improve the falling numbers of the LCD screen division. With ongoing battles between Apple, I find it unlikely that Samsung’s LCD business will bounce back anytime soon, but you never know with new technology inventions or through improved efficiency, anything can happen.

It will be interesting to see how the combination of these two businesses will play into the company’s profits in the coming quarters, but we can only wait and see.

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Photo Courtesy of steve
Photo Courtesy of nach