SEOUL, 30 Aug. (Reuters/EP) -
Samsung Electronics is considering reducing its monthly production of television screens by four-fifths by the end of this year and reconverting some of its lines to produce the screens used in tablets and laptops, according to information published on Tuesday.
The move comes as flat panel manufacturers struggle with weak demand for TVs and desktops amid uncertainty over the global economic outlook.
The Korea Economic Daily said in an unsourced report that Samsung is considering reducing its monthly production of TV screens by between 1 million and 1.3 million units, to about 200,000-300,000 units by the end of this year.
Samsung is also considering changing part of its production of TV screens to be used to manufacture screens for tablets and notebooks, according to the information.
Samsung said Tuesday it would not comment on market rumors. The South Korean firm, which is vying for the top spot in the world from leading manufacturer of large liquid crystal displays (LCDs) to LG Display, has said it would make production more flexible depending on the market outlook.
LG Display also said on Monday that it would cut spending on investments next year by a third in the face of the "boom" in sales of mobile devices such as the iPad or Android smartphones, which has reduced the demand for TV screens, its main source of income.
The LCD unit is the lowest-performing unit among Samsung's key operations, which also include memory chips, mobile devices and TVs.
The flat panel display division posted a second consecutive quarterly loss in the second quarter, and Samsung replaced the division director and combined it into its chip unit.
Authors: PortalTIC.es / Companies
