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Korea, Taiwan firms race for a piece of LCD market

Post Time:Oct 16,2009Classify:Industry NewsView:426

Korea’s LCD market share in China increased by 2% on-quarter

Korean and Taiwanese companies have been neck and neck in China’s LCD TV panel market. In recent months, as Korean companies aggressively invest in the LCD TV sector, their market share in one of the biggest potential markets for LCD TVs is growing.

According to DisplaySearch, a leading display market research firm, the LCD TV panel market share in China of Chi Mei Optoelectronics, Taiwan’s biggest LCD panel maker, fell to 31 percent during the second quarter, from 40 percent during the first quarter. The combined market share for Taiwan’s top three LCD makers in China however, stayed in the lead at 47 percent - the same as the first quarter.

Meanwhile, Samsung Electronics’ LCD panel market share in China rose 6 percent on-quarter in the April to June period, to total 24 percent. Although LG Display’s share there fell from 21 percent during the first quarter to 18 percent in the second, Samsung’s jump ended up raising Korea’s LCD panel market share in China by 2 percent on-quarter, to 42 percent.

Both Samsung and LG have recently stated they plan to expand their LCD panel business in China. In late August, LG Display, the world’s second largest maker of LCD displays, signed a preliminary agreement with Guangzhou, China, to build an eighth-generation LCD factory that reportedly could be worth up to 5 trillion won ($4.22 billion). A few days later, Samsung Electronics responded by saying that they are also considering building an LCD panel plant in China to meet the growing demand for higher-end television sets there.

“Local companies are building LCD plants in China to get either direct or indirect support from the Chinese government. The Chinese government has been pushing for local production of LCD parts,” said Lee Hak-moo, a researcher at Mirae Asset Securities.

With the rise in foreseeable investment in this sector, the price of LCD panels is expected to decrease in the latter half of the year, as companies are producing more panels for TVs. Taiwanese IT daily DigiTimes reported that Samsung’s and LG’s glass panel supply will stabilize by the end of the year, as their prices fall 6 to 7 percent compared to last year.

Source: joongangdaily.joins.comAuthor: shangyi

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