Samsung bids Sony adieu, finds new chip partner

Shortly after Samsung Electronics announced it is parting ways with Sony in their joint venture in LCD (liquid-crystal display) panels, the company announced that it will set up a new venture in nonmemory chips with companies including NTT DoCoMo, Fujitsu, Fujitsu Semiconductor, NEC and Panasonic.

Technology critics closely monitor every move by Samsung, the world’s largest maker of flat-screen TVs, LCD panels and memory chips. And many see the new venture as indicative of changing trends in the IT industry.

In the realm of panels, LCD prices have been falling consistently, fueling speculation that OLED (organic LED) TVs will replace LCD screens in the near future. Meanwhile, DRAM memory chips have become less lucrative, while nonmemory chips for smartphones are thought to yield greater profits.

Panels and chips have been the two main pillars of Samsung’s parts and components business, with Apple, Sony and of course itself ranking among its top clients.

For full article see Joongang Daily.