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Those who look for signs of hope in the OLED display market will now have one less place to look for them. Toshiba has announced that it will not produce OLED panels at Toshiba Mobile Display as originally planned, and instead will focuse on LCD panels instead. This comes after the company spent nearly $200 million two years ago to create an OLED production line.

This decision makes a little more sense when you consider that Toshiba sold its low-temperature poly-silicon (LTPS) line in Singapore to AUO earlier this year, as pointed out by my friend and colleague, Ken Werner. The fact that Toshiba is struggling financially is also likely to be a factor, and they have to cut costs and shed excess assets so that they can tend to their primary revenue generators. The risk in this strategy, of course, is that it leaves them with fewer options should the markets shift away from their core products. Times could remain tough for Toshiba for a while.

Posted by Alfred Poor, October 4, 2010 6:00 AM

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About Alfred Poor

Alfred Poor is a well-known display industry expert, who writes the daily HDTV Almanac. He wrote for PC Magazine for more than 20 years, and now is focusing on the home entertainment and home networking markets.