By Kim Yoo-chul
Staff Reporter
PAJU, Gyeonggi Province ― The proposed strategic alliance in liquid crystal displays (LCD) joint venture between Sony and Sharp might pose a ``serious’’ threat to industry leader Samsung Electronics. However, the proposal seems to present an opportunity for Samsung rival LG.Philips LCD (LPL).
``We grabbed the chance to sell our products to Sony. We are anticipating Sony’s approach,’’ LPL Chief Executive Kwon Young-soo told reporters on Friday after the annual shareholders’ meeting at the company’s crystal display complex in northern Seoul.
``But we will not ask Sony to buy our products immediately,’’ he added. LPL is the world’s No. 2 crystal displays supplier after Samsung Electronics, capitalizing on the industry’s mainstream 40-inch level.
His comments come amid rising possibilities of LCD’s realignment after Sony and Sharp recently struck a deal.
In an apparent move to surge ahead of Samsung and regain past glory in the global flat screens segment, the world’s No.2 and No. 3 television set manufacturers, respectively, reached an agreement to jointly produce highly-profitable 60-plus inch crystal panels.
Global demand for flat-screen TVs is expected to register double-digit growth again this year, bolstered by fresh demand from viewers of the Beijing Olympic Games.
Flat-screen TVs are "positioned as the core of digital household electrical appliances," according to Matsushita President Fumio Otsubo.
Kwon has clarified that his company will maintain the current business strategy of producing 40-inch level panels and signaled for an additional investment in 8th generation lines.
``I cannot clearly understand the recent Sony-Sharp deal. The move is rather hesitant,’’ he said.
``Market conditions this year and next year look good as Samsung Electronics and Taiwanese players are likely to delay the investments on the eighth-generation line,’’ he added.
Experts say products prices are likely to decline in the aftermath of intensifying competition. The burden of investment in cutting-edge technology has been snowballing.
On a question over the possible alliance with Samsung Electronics under a united attack by Japanese rivals, Kwon said the company has engaged in final talks with Samsung Electronics to supply its distinctive 37-inch panel.
``Korean players need to maintain a healthy partnership with each other,’’ he emphasized.
Separately, shareholders gave a green light to change the company’s name to LG Display after Philips lowered its stakes to the South Korean joint venture to 19.9 percent from 32.9 percent.
LG Electronics is currently the joint venture’s largest shareholder with a 37.9 percent stake.