Samsung plant to end contract production

HANOVER, Germany ― Choi Jee-sung, head of Samsung Electronics’ digital media division, said yesterday that his company would no longer sell computer monitors made under original equipment manufacturing (OEM) contracts. “Within this year we will come up with computer and monitor lineups made in Samsung plants,” Mr. Choi said while meeting with Korean reporters at the CeBit fair here. Mr. Choi said that Samsung did not extend its contract with the U.S. computer maker Dell late last year and that exports of Samsung computers under OEM contracts would be halted by August. “We have been considering dropping the OEM system for a long time, but it was hard to succumb to the temptation because it helped a lot in increasing exports,” Mr. Choi said. He stressed that without OEM contracts, Samsung would still be able to generate its biggest sales revenue this year of $10 billion in the TV sector on augmented sales: In addition to the World Cup Games in Germany in June, demand for digital TVs has soared. “Unlike Sony and Panasonic, which respectively focus on liquid crystal display TVs and plasma display panel TVs, we will pursue both types of digital TVs,” he said. by Hong Joo-yun