Korea-based LCD (Liquid Crystal Display) panel makers LG Display and Samsung are expected to continue reducing production in the fourth quarter and cut back on related capital spending in 2009, Economic Daily News of Taiwan reported on October 15.

Continuing with the production reduction in the third quarter, LG Display is reducing its LCD panel output by 5% in October. The rate of production reduction is projected to grow to 10% in November and December depending on market demand. Furthermore, the company announced that it will downsize its capital spending to 1.5 trillion to 2.0 trillion Won (US$11.15 billion to US$14.87 billion; US$1=1345.1 Won) in 2009, down by more than 50% from 4.1 trillion Won (US$30.48) in 2008. Production at the company's new 6G and 8G plants, currently under equipment installation, is projected to be postponed should panel supply continue to exceed market demand.

Samsung's LCD-related capital spending is expected to shrink in 2009 as well. The company recently let on that it has cut back on LCD panel production starting in August, averaging a 5% reduction in output per month. Samsung's production reduction is projected to carry over into the first quarter of 2009, according to the Economic Daily News report.