Samsung board approves LCD unit spinoff

Samsung's board of directors has approved plans to spin off the company's Liquid Crystal Display (LCD) units as a standalone business.

The Korean tech giant confirmed that Samsung Display Company Ltd will launch as a corporation in its own right on April 1, subject to shareholder approval.

Samsung is implementing the strategy to focus on new technology in the sector in a bid to reverse slowing demand and falling profits in the LCD market.

"The spinoff will allow us to make quicker business decisions and respond to our clients' needs more swiftly," said Donggun Park, executive vice president and head of Samsung's LCD unit.

"Through enhancements in business competitiveness, we will continue to provide superior products and services for the market."

The LCD market has been in decline for some time. In October last year, Sony announced plans to overhaul its television arm following eight straight years of losses. Samsung bought out Sony's entire stake in an LCD joint venture in December.

Hitachi confirmed that it is bowing out of the television hardware market entirely from December this year.