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| 삼성SDI |
[Alpha Biz= Reporter Kim Jisun] Samsung SDI has announced the sale of its polarizing film business under the Electronic Materials Division. The move is part of a strategic portfolio shift to focus on next-generation materials by reallocating funds from non-core businesses.
On the 10th, Samsung SDI’s board approved the transfer of the polarizing film business to China's Wuxi Hengxin Optoelectronics Material Co., Ltd. The total transfer amount is KRW 1.121 trillion, including the complete transfer of the polarizing film manufacturing and sales operations at its Cheongju and Suwon sites in Korea, as well as 100% of the shares in its Wuxi subsidiary in China. The sale will be finalized pending regulatory approval.
Polarizing film is an optical film used in display panels, working with liquid crystals to block or pass light according to electrical signals. It is a key material for controlling light transmittance and reflectance in LCD and OLED TVs and monitors.
Samsung SDI entered the polarizing film business 17 years ago after acquiring Ace Digitech in 2007. Over the years, it has supplied premium polarizing films to global TV brands like Samsung Electronics. In 2022, it ranked third in the global polarizing film market with an 11.4% share. The Electronic Materials Division, which includes the polarizing film business, reported sales of KRW 577.2 billion and an operating profit of KRW 72.2 billion in the second quarter of this year.
The decision to sell the business comes as Chinese competitors intensify their supply, eroding profitability. The shift towards battery-centered growth has also realigned Samsung SDI’s focus. The Wuxi subsidiary's net profit, which reached KRW 64.7 billion in 2019, fell to KRW 30.8 billion in 2023. The decline in the global LCD market, now dominated by Chinese companies, played a key role in the decision to exit the polarizing film business. Other companies, such as LG Chem and LG Display, have also divested from their polarizing film and LCD businesses due to similar pressures.
Samsung SDI’s growing focus on secondary batteries, particularly for electric vehicles (EVs), is seen as a driving factor behind the sale. The KRW 1 trillion raised from this divestiture will likely be reinvested in core businesses, including EV battery R&D and mergers and acquisitions.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
