Samsung to spend $3.6 billion on a new OLED production line

Just a couple of weeks ago, Samsung announced its Q4 and fiscal 2014 results, reporting the company’s first decline in three years. Saying it planned to streamline its smartphone portfolio, it will introduce phones with “new materials, innovative design, and differentiated features.” However, Reuters reveals that the company is also hoping to boost component sales with a brand new OLED production line.

The company plans to invest $3.6 billion dollars in the the production of OLED panels between 2015 and 2017. The new line will focus on small to medium panels for use in smartphones and tablets, and though Samsung will obviously be leveraging this new line for its own products, an analyst that spoke to Reuters said it’s possible sales could expand to outside customers.

Though the company is better known to consumers as an electronics manufacturer, Samsung has been producing its own processors, RAM, flash memory, and image sensors for years. The company has provided Apple with processors for the iPhone since 2007 and is rumoured to be providing the processors for the iPhone 7, which is scheduled for launch later this year. The company makes a lot of money from its business as a component manufacturer and a new OLED production line will allow Samsung to make money from its advancements in flexible and curved displays.

The company’s investment in OLED equates to about 4 trillion won. Reuters reports that Samsung invested a similar amount in its display business last year, too.