A few weeks back, Reuters had reported that Samsung will end the production of LCD panels in South Korea and China by the end of this year due to diminishing demands. A new report from MyDrivers claims that might not exactly be the reason for the company’s change in strategies.

According to the report, Samsung is shutting down LCD production lines to shift its focus from LCDs to Quantum Dot OLED (QD-OLED) displays. The report also cites rising competition from Chinese brands in LCD to be one of the reasons for the South Korean tech giant to change its plans.

This essentially reiterates the 13.1 trillion won ($10.72 billion) 5-year investment plan made last year to upgrade its LCD production lines in South Korea for the production of QD-OLED panels.

Samsung’s QD-OLED displays are said to have a better 1 million hours lifespan. The panel will be made of vanadium phosphate instead of toxic cadmium. Using Quantum Dot OLED results in a wider color gamut and better screen brightness.

Thanks to quantum dots, QD-OLED display emits just one color thereby reducing production costs. The chances for a QD-OLED panel to get affected by burn-in issues are also expected to be less when compared to traditional OLEDs.

Although QD-OLED displays are cheaper than the current OLED panels to manufacture, the report suggests the cost might match OLED in the initial mass-manufacture stages due to technical reasons. However, in the long-run, the industry is expected to catch up to produce QD-OLED displays relatively cheaper than OLED panels.