Samsung prepares component spin-off

Samsung’s head of its semiconductor division, Kwon Oh-hyun, will lead a new operation combining its flat panel and chip segments.

According to the Wall Street Journal, together the divisions represented 44 percent of revenue for Samsung and an impressive 70 percent of overall operating profits. Analysts at IBK Securities told the publications that the move signifies an attempt to move from LCD to the advanced OLED. 

Not only that, but the joint operations under single management could mean a spin-off company to distance itself from consumer electronics, boosting competition by offering components that are not seen to compete with other gadget makers. An example would be the patent spat between it and Apple.

Although one division of Samsung supplies components to Apple, the product side is locked in a bitter war – while Apple claims Samsung copied all of its ideas. Samsung has approached the ITC to move for iDevice product embargoes. 

Samsung’s chip operations are performing well. It is the closest company to touch on Intel’s territory in ten years, according to analysts.  But Kwon Oh-hyun believes the memory chip market is going to remain flat in the second half of the year, reports Reuters

Meanwhile, Samsung must struggle with others problems at home. Even though flat panel shipments are on course, pay fixing allegations are becoming a regular gnat in Samsung’s ointment. 

A combined components spin-off could make sense.