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Samsung Plans LCD Joint Venture in China

Post Time:Oct 26,2009Classify:Company NewsView:609

SEOUL -- Samsung Electronics Co. said it will set up a joint venture to build a 7.5-generation liquid crystal display panel plant in Suzhou, China, that will cost about 2.6 trillion won ($2.25 billion).

Samsung LCD monitors are displayed at the entrance of the Samsung booth at the Korea Electronics Show 2009 in Ilsan, South Korea.

Samsung Electronics, the world's biggest supplier of liquid crystal display panels, also said in a regulatory filing it will spend 925.2 billion won on the joint venture, without elaborating.

The electronics giant has decided to set up the plant in China in order to exploit demand there for flat-screen televisions above 40 inches in size, said company spokesman James Chung.

Samsung declined to provide financial details about the plan, its partner for the joint venture and how big a stake it would hold.

"Everything regarding the financial details will be available only when both the Korean and Chinese governments approve the plan," Mr. Chung said.

The news came just two days after its hometown rival LG Display Co. said it will set up a joint venture for a planned $4 billion eighth-generation LCD plant in China, which is seen as an important growth market for LCD makers.

A 7.5-generation plant can churn out panels bigger than 40 inches while eighth-generation fabs are equipped to produce panels bigger than 50 inches

Source: http://online.wsj.comAuthor: shangyi

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