Samsung SDI said on Tuesday that it plans to sell its polarizing film business to Wuxi Hengxin Optoelectronic Materials for 1.12 trillion won.
The deal includes all of the South Korean battery maker’s shares in its subsidiary in Wuxi, China as well as its domestic units related to polarizing film in Suwon and Cheongju in South Korea.
Samsung SDI said its electronic material business, which ran the polarizing film unit, will focus on materials for semiconductors, OLED, and batteries to maximize synergy with the battery business.
The company’s decision is likely affected by its main customer Samsung Display’s exit from the liquid crystal display (LCD) market. Polarizing films are used in LCD. In 2019, Samsung Display also divested its anisotropic conductive film business to Kukdo Chemical, ACF is also used in displays.
Samsung SDI’s polarizing film unit traces its origin to Cheil Industries, another Samsung affiliate, in 2007. Cheil Industries later merged with Samsung SDI in 2014.
