Samsung Display Co. made a significant announcement on Thursday, stating that it will be paying out dividends for the first time since its establishment in 2012. This move is expected to have a positive impact on its parent company, Samsung Electronics Co., which stands to receive a substantial $4.2 billion in dividends.
During a recent shareholders’ meeting held on Tuesday, Samsung Display decided to distribute dividends of 25,400 won per share, totaling an impressive 6.65 trillion won. With Samsung Electronics holding an 84.8 percent stake in Samsung Display, it is estimated that the tech giant will receive around 5.64 trillion won from the dividend payout.
The decision to pay dividends comes at a crucial time for Samsung Electronics, as it requires substantial funds to support its investments in the semiconductor industry. With the constant need for advancements and innovation in the chip sector, Samsung Electronics has been making significant investments to maintain its competitive edge.
This move by Samsung Display is seen as a strategic decision to lend support to its parent company, ensuring that Samsung Electronics has the necessary financial resources to sustain its chip-focused endeavors. The infusion of 5.64 trillion won will undoubtedly strengthen Samsung Electronics’ position in the market, allowing it to continue pushing the boundaries of technological innovation in the semiconductor industry.
As industry experts observe, the dividend payout not only signifies Samsung Display’s commitment to its shareholders but also showcases its dedication to bolster Samsung Electronics’ financial capabilities. By providing the much-needed cash flow, Samsung Display is enabling its parent company to maintain its dominance in the competitive chip market and further solidify its position as a global tech leader.
In conclusion, Samsung Display’s decision to pay dividends for the first time since its establishment will provide a significant boost to Samsung Electronics. With a substantial $4.2 billion expected to flow into its coffers, Samsung Electronics can continue its investments in chips and remain at the forefront of technological advancements in the semiconductor industry.
The dividend payout by Samsung Display has implications not only for Samsung Electronics but also for the overall display industry. The display industry has been experiencing significant growth in recent years, driven by the increasing demand for advanced displays in various devices such as smartphones, televisions, and laptops.
As consumer preferences shift towards larger screens with higher resolutions and better image quality, display manufacturers like Samsung Display are continuously investing in research and development to create innovative display technologies. This includes the development of flexible OLED displays, which offer improved flexibility and durability compared to traditional LCD panels.
The market for display technologies is expected to grow further in the coming years. According to market research firm Mordor Intelligence, the global display market is projected to reach a value of $177.3 billion by 2026, growing at a compound annual growth rate (CAGR) of 6.5% from 2021 to 2026. This growth is driven by factors such as the increasing demand for smartphones and smart devices, the rising adoption of OLED displays, and the emergence of new display technologies like microLED.
However, the display industry also faces some challenges. One of the key challenges is the intensifying competition among display manufacturers. Companies like Samsung Display not only compete with traditional rivals like LG Display and BOE Technology but also face increasing competition from Chinese display manufacturers. This competition puts pressure on companies to continuously innovate and develop new technologies to stay ahead in the market.
Additionally, the display industry also needs to address sustainability concerns. The production of displays involves the use of materials that can have adverse environmental impacts. Display manufacturers are increasingly focusing on developing more sustainable and eco-friendly manufacturing processes to reduce their carbon footprint and minimize waste.
To stay updated with the latest developments in the display industry, you can visit industry news websites like Display Daily and DisplaySearch. These websites provide insights into market trends, technology advancements, and industry forecasts.
The source of the article is from the blog elperiodicodearanjuez.es