(Reuters) -- Samsung Electronics Co said on Monday it would spin off its loss-making LCD flat-screen business into a separate affiliate as it seeks to orient its component business towards OLED displays, touted as the technology that will replace LCD TVs.

The decision at its board meeting on Monday follows its announcement last week that it was reviewing separating the LCD business, as the sector has been mired in a slump and looks set to become a low-growth commodity type technology with greater competition from low-cost Chinese manufacturers.

(Reporting by Miyoung Kim; Editing by Jonathan Hopfner)