Samsung Display aims to solidify leading position under CEO Choi Joo-sun

Samsung Display Co.’s Chief Executive Officer Choi Joo-sun. [Courtesy of Samsung Display]

Samsung Display Co., display unit of South Korea’s top conglomerate Samsung Group, has posted better-than-expected earnings despite industry-wide recession in the first and second quarters of this year after record earnings last year under the leadership of Chief Executive Officer Choi Joo-sun.

In 2022, Samsung Display posted 5.95 trillion won ($4.6 billion) in operating profit on sales of 34.4 trillion won, up from 4.5 trillion won and 31.7 trillion won each in 2021 when Choi initiated his term.

Recession across information and technology (IT) device industry continued in the first half of the year but Samsung Display was able to deliver solid results in the first quarter with 6.61 trillion in sales and 780 billion won in operating profit and 6.48 trillion in sales and 840 billion won in operating profit in the second quarter.

The company was able to secure 32.8 trillion won in cash and cash equivalent assets at the end of last year.

In February, the company surprised the industry by lending 20 trillion won to Samsung Electronics Co.

Samsung Display has been making a series of aggressive moves recently aiming at widening the gap with its competitors and solidifying its global No. 1 position in the display sector. The company’s bold moves reflect the CEO’s ability to look to the future and increase investment in times of crisis.

The biggest project led by Choi is the world‘s first 8.6-generation organic light-emitting diode (OLED) display investment project.

In April, Samsung Display announced plans to invest 4.1 trillion won by 2026 to build a state-of-the-art IT OLED line in Asan, South Chungcheong Province.

Based on its experience in leading the technology transition from liquid crystal display to OLED in the smartphone market over the past decade, the company plans to lead the OLED transition in the tablet PC and notebook market.

In May, Samsung Display announced that it was acquiring the U.S. OLED maker eMagin Corp. The deal, valued at $218 million is seen as a move to respond to the extended reality (XR) market, a future growth driver.

“XR devices are expected to have great growth potential in the future,” Choi said, noting that “eMagin’s technology will allow us to offer innovative products to more customers and strengthen our XR-related business,” said Choi.

The automotive OLED market is also an important part of the company’s future strategy.

In April, the company signed an agreement to supply advanced OLEDs to Ferrari S.p.A., a global supercar brand.

“Based on our OLED technology that we have concentrated on for a long time, we will present cutting-edge display solutions worthy of Ferrari,” Choi said. “We will work with Ferrari and other global automakers to strengthen our automotive OLED business.”

Samsung Display under Choi’s leadership also aims to seek innovation in its quantum-dot (QD) OLED business, which is in its second year.

The company’s QD OLEDs have been available for 55- and 65-inch TVs and 34-inch monitors. This year, the company added 77-inch TVs and 49-inch ultra-wide monitors to its lineup.

Also, the company applied artificial intelligence (AI) technology and the latest organic materials to improve color brightness to more than 2,000 nits.

QD OLED has been recognized for its innovation, including being awarded Display of the Year by the Society for Information Display, the world’s leading display organization.

Choi is also focused on preparations for the company’s new headquarters building, which is scheduled for completion in 2024. The 15-story-high headquarters building, which will be located in the company’s Giheung Campus with five underground floors, will integrate scattered organizations such as research and development, sales and marketing to create synergy.