LG Display to Build LCD Plant in China
LG Display, the world's second-largest flat-screen maker, inked a contract to build an eight-generation liquid crystal display (LCD) plant in Guangzhou, China, company officials said Tuesday.
The company will invest $4 billion in its new manufacturing plant, which will begin operations in 2012 and eventually acquire an annual capacity of 120,000 LCD substrates.
To establish the factory, LG Display agreed to establish a $1.3-billion joint venture with the city of Guangzhou.
LG Display will own 70 percent of the new company, while Guangzhou city and a yet-to-be-determined Chinese television maker will share the remaining 30-percent stake.
The company hopes that the upcoming LCD plant will put it in a better position to exploit the rapidly expanding Chinese television market.
The market for LCD televisions in China will grow to 40.8 million units in 2012 from 25 million units this year, edging the size of the North American and European markets during the span, according to market researcher Display Search.
LG Display and Guangzhou city signed a memorandum of understanding (MOU) over the LCD plant in August.
Aside from its strategies for the television segment, LG Display has also been retooling its manufacturing lineup to strengthen its position in the mobile device segment.
The company has invested more than 577 billion won to establish manufacturing facilities for low-temperature poly silicon (LTPS) LCDs at its Paju LCD cluster in Gyeonggi Province.
It is also planning to add active matrix organic light emitting diodes (AMOLEDs) manufacturing lines to exploit rising demand in mobile phones and portable media players.
The company will invest $4 billion in its new manufacturing plant, which will begin operations in 2012 and eventually acquire an annual capacity of 120,000 LCD substrates.
To establish the factory, LG Display agreed to establish a $1.3-billion joint venture with the city of Guangzhou.
LG Display will own 70 percent of the new company, while Guangzhou city and a yet-to-be-determined Chinese television maker will share the remaining 30-percent stake.
The company hopes that the upcoming LCD plant will put it in a better position to exploit the rapidly expanding Chinese television market.
The market for LCD televisions in China will grow to 40.8 million units in 2012 from 25 million units this year, edging the size of the North American and European markets during the span, according to market researcher Display Search.
LG Display and Guangzhou city signed a memorandum of understanding (MOU) over the LCD plant in August.
Aside from its strategies for the television segment, LG Display has also been retooling its manufacturing lineup to strengthen its position in the mobile device segment.
The company has invested more than 577 billion won to establish manufacturing facilities for low-temperature poly silicon (LTPS) LCDs at its Paju LCD cluster in Gyeonggi Province.
It is also planning to add active matrix organic light emitting diodes (AMOLEDs) manufacturing lines to exploit rising demand in mobile phones and portable media players.
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