Samsung to combine display, semiconductor businesses

Samsung will combine both its flat-panel display and semiconductor businesses into one unit, The Wall Street Journal reported on Friday. Samsung’s display business wasn’t profitable during the first quarter and it’s on track for the same lackluster performance during the second quarter. Combined, however, the display and semiconductor businesses made up 70% of Samsung’s operating profits and 44% of the South Korean company’s revenue, The Wall Street Journal said. In other words, the move looks like an attempt to shroud the poor display performance inside the company’s more successful semiconductor unit. The display unit could see more trouble ahead as well, since Samsung is currently locked in a number of legal battles with Apple, the largest buyer of Samsung’s LCD products. Kwon Oh-hyun, Samsung’s semiconductor president, will oversee the new joint businesses.