Samsung spends US$3 billion to produce display modules

With the strong rise of Chinese panel manufacturers, Samsung seems to be really in a hurry! It was only reported on the 6th that Samsung may spend money to build a 10.6-generation factory. Now, according to Reuters, citing sources, a subsidiary of Samsung Electronics announced that it will invest US$3 billion in Vietnam for the mass production of display modules.

The source also said that the investment will be spread over the next five years, and Samsung Display plans to increase the production of several display screens, including OLED screens.

Samsung Display invested US$1 billion in the construction of LCD panel and other factories in Bac Ninh Province, Vietnam, last year, and it was officially put into production in the first quarter of this year. Sources said that Samsung’s new investment project will be divided into several years starting from 2020. Samsung plans to increase the production of various panels such as OLED. Details of the investment have yet to be decided, the sources said.

Samsung Display chose to invest in Vietnam mainly to take advantage of Vietnam’s relatively cheap labor force and gain certain advantages in the fierce smartphone competition industry. Samsung Electronics is a major customer of Samsung Display. Over the past three years, Samsung Display's average annual capital expenditure has been 3.9 trillion won ($3.4 billion).