Executives and analysts are
talking about "oversupply" in the liquid crystal display market but it's apparent the word doesn't exist in China, the cash-rich resource-hungry country. That's why, on the heels of crosstown rival LG Display Co. Ltd. (NYSE:LPL) announcing a venture for a $4 billion LCD plant in Guangzhou, Samsung Electronics Co. Ltd. is
creating a joint venture to build an LCD plant costing about 2.6 trillion won (2.23 billion dollars) in eastern China.
The plan is to build bigger (possibly up to 50 inches), more energy efficient LCDs. If it weren't for the Chinese, panel makers would be in trouble. As Bloomberg reports, Austin, Texas, researcher DisplaySearch raised its full-year estimate for the global LCD television market, citing
demand from China and North America and as more consumers replace their bulkier glass-tube sets.
Chang Won-kie, president of Samsung's LCD division, recently said that to
prevent oversupply, companies need to focus on profitability in tandem with overall demand, instead of increasing supply in order to raise their market share.
JoongAngDaily has more of Won-kie's
comments about the market and types of LCDs.
The name of Samsung's JV partner and certain financial details were withheld,
pending approval. Samsung is investing $800 million. -
Baz Hiralal
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