Contract Signed After Board Resolution on the 10th
Samsung SDI will sell its polarizing film business in China to focus on developing next-generation materials.
Samsung SDI announced on the 10th that it will transfer its polarizing film business within the electronic materials division to Wuxi Hengxin Optoelectronic Materials Co., Ltd. in China. The transaction amount is 1.121 trillion KRW. The company stated that it has passed a board resolution and signed the transaction contract on the same day, and plans to complete the transaction after obtaining approval from relevant authorities and completing other procedures.
Samsung SDI will transfer all businesses related to the manufacturing and sales of polarizing films at its plants in Cheongju, Chungbuk, and Suwon, Gyeonggi, as well as all shares of its Wuxi corporation located in Jiangsu Province, China. The average operating rate of the domestic and Chinese polarizing film factories last year was 83%, with a production capacity of 91.32 million ㎡.
Regarding this sale, Samsung SDI said, "We will focus our core capabilities on developing next-generation materials in the electronic materials business sector, such as semiconductors, organic light-emitting diodes (OLED), and batteries, to enhance competitiveness," and added, "We plan to maximize synergy with the battery business through continuous investment."
A Samsung SDI employee is inspecting polarizing film at the polarizing film production plant. [Photo by Samsung SDI]
Polarizing film is the black film that covers the entire screen at the very front of TVs, monitors, and other displays. It plays a role in controlling the light transmittance and reflectance of liquid crystal displays (LCD) and OLED displays.
Polarizing film production costs can be reduced through inexpensive raw materials and efficient production processes, enabling Chinese companies to gain price competitiveness and rapidly expand their market share. As a result, existing leaders such as those in Korea and Japan find it difficult to compete with Chinese companies solely based on technology and quality.
After separating the polarizing film business, Samsung SDI's electronic materials division will retain the production of semiconductor and battery materials, as well as display materials (film materials such as process protection films for OLED and process materials for OLED). The electronic materials division recorded sales of 2.3022 trillion KRW last year, accounting for 10% of the total sales including the energy solutions division (electric vehicle batteries, ESS, etc.).
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