The outfit has announced that it plans to write a cheque for $3.6 billion into making organic light-emitting diode (OLED) panels.
A Samsung Display spokesman said that the new production line would mainly make medium and small-sized OLED displays for consumer electronics devices like smartphones and tablets. The investment would be made from 2015 to 2017.
The new line will initially produce curved panels like those on the Galaxy Note Edge, and eventually help win external customers which are becoming crucial to parent Samsung Electronics’ future earnings growth.
In addition to the planned OLED investment, Samsung is expected to start building a chip plant in South Korea sometime in the first half of the year. The company said in October that construction for this plant will be completed in the second half of 2017.
However it is likely that all this investment will cut back on Samsung’s total 2015 dividend payout and it is likely that share values will fall.
It is not the only one thinking of following this line. South Korea’s Yonhap News Agency said this morning that LG Display is adding capacity in an existing large-panel OLED production line.