Korea's Government Gives Green Light for Korean LCD Makers to Establish Plants in China
December 25, 2009
The Korean government announced on December 24 that it has approved two Korean leading LCD (Liquid Crystal Display) makers, Samsung and LG, to export their proprietary LCD technologies into China, Dow Jones Newswire reported on December. Upon the approval by the government, Samsung is granted to build a 7.5G LCD plant in Suzhou, China, for 2.6 trillion Won (US$2.21 billion; US$ 1 = 1178.9 Won), which will mainly manufacture panels for LCD TVs with sizes above 40-inch. Meanwhile, LG is also given rights to set up a 8G LCD plant in Guangzhou for US$4 billion, mainly churning out panels with sizes above 50-inch, according to the same source.
Aside from Samsung and LG, Japan's Sharp teamed up with China Electronics to build a 8G plant while Taiwan's AUO entered a cooperation agreement with Sichuan Changhong Electric, whereby they would collaborate in the production of LCD modules. Another Taiwanese panel maker CMO stated that the company would build a LCD plant in China if the Taiwan's government lifts its ban on cross-strait investment, according again to Dow Jones Newswire.