Lost its major customer Samsung, Korea’s largest equipment manufacturer Semes sells LCD division
Semes, the largest semiconductor and display equipment company in South Korea and a subsidiary of Samsung Electronics, reported that it is making structural adjustments to reduce its LCD equipment business. It is speculated that Samsung Display will no longer make new investments in the LCD field, which is the main reason for forcing Semes to reduce its business in order to improve the overall operating efficiency of the company.
According to the Korean media The Elec report, Jiang Changzhen, who was sent to Semes from Samsung Electronics’ semiconductor division to serve as the company’s representative, was reported to reorganize the company within three months of taking office and will reduce the LCD device business. . Previously, Semes had contacted another South Korean equipment company for the sale of LCD equipment business but failed, and is currently worrying about the next move. Although Semes will reduce its LCD device business, it will continue to operate the LCD for Samsung device business in terms of display devices.
Samsung Display is the key to Semes's decision to adjust the LCD device business. In recent years, Samsung Display has continued to invest in the expansion of LCD for Samsung production capacity, and I am afraid that there will be no new investment in LCD in the future. Although Semes tried to sell LCD devices to panel companies in mainland China in 2017, it was judged that the LCD device business would not have room for further development.
The Korean industry said that Semes is a subsidiary of Samsung Electronics, and it is not easy to sell products to external panel companies other than Samsung Display; it is also not suitable to maintain the LCD device business whose profitability has declined sharply. Business direction.
In 2017, Semes revenue exceeded 2 trillion won (approximately US$1.77 billion), and fell between 1.8 trillion and 1.9 trillion won in 2018; revenue from the display equipment business has maintained growth until 2017, and 2018 There was a substantial decrease in the year. The Korean industry speculates that in 2018, the revenue of Semes's display equipment business will be about 150 billion to 199 billion won; in 2017, it will be 405.2 billion won.
Semes is unwilling to confirm the rumors that it will reduce the scale of the LCD device business, only that it is seeking a business breakthrough, and is also considering stopping the production of semiconductor back-end process equipment with low profitability and small orders. But the TSV-Bonder machine will maintain production.
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