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Samsung announced recently that it will spin off its LCD business, which has struggled in recent quarters, to instead focus on manufacturing its OLED displays. In a statement issued on Monday, Samsung explained that it will merge Samsung LCD into Samsung Electronics and then eventually dissolve the company. The objective of the move is to "nurture the LED business as the future growth engine of Samsung Electronics' component business by utilizing its advanced technology, manufacturing competency, and global sales network," Samsung said. The merger is set to take effect on April 1st, 2012.

Samsung's LCD display unit had an operating loss of $666 million in 2011, Reuters said Monday, noting that other LCD makers such as Sharp, Sony and Panasonic are all expected to lose as much as $17 billion this year. Research firm DisplaySearch expects the LCD TV market will fall by 8% by 2015, to $92 billion in annual sales. Meanwhile, the OLED TVs are expected to own 16% of the television market and bring in $20 billion in annual sales by 2018.

[via Reuters]