By Kim Yoo-chul
Staff Reporter
Flat-panel suppliers and television makers are moving to form alliances, cashing in on expected soaring demand for larger pricey TVs ahead of the 2008 Beijing Olympic Games.
Sales of television set are forecast to be brisk this year around the world. According to data from DisplaySearch, a market research firm, global LCD TV shipments will rise over 30 percent to 110 million this year, up from about 80 million in 2007.
Experts say the television business is still powerful enough to trigger an industrial reshaping as well as mergers and acquisitions, and the ongoing consolidation in the LCD TV sector represents such a trend.
``Only 5 percent of Chinese households have LCD televisions and the figure is still low compared to 20 percent for PCs,’’ said Kim Hak-ju, an analyst of Samsung Securities.
A week ago, Sony said it would look at the possibility of teaming up with other flat-panel companies, shying away from its existing partnership with Samsung Electronics. Sony has admitted to having a shortage of panels, considering the demand for flat-panel TVs.
The Japanese electronics giant has reportedly been seeking to forge a partnership with Taiwan-based AU Optronics, which has recently decided to pour $3 billion into building an eight-generation panel plant that will kick off mass production during the second half of 2009.
Sony’s recent decision comes two months after Samsung Electronics decided to spend an additional 2 trillion won on the second phase of expansion for its 8-1 line without a partnership with Sony. The ambitious move by Samsung has widely been interpreted as a tactic to continuously lead its global position in the over 40-inch larger-sized LCD TV segment.
LG.Philips LCD, the world’s second-largest LCD panels manufacturer, also formed a $98 million strategic alliance with its Taiwanese rival HannStar Display and said it will hire more staff and inject more capital into the recently established eighth generation line.
``As seen in the Japanese LCD industry where Hitachi, Canon and Matsushita rushed to forge partnerships, alliances will be strengthened between panel suppliers and television manufacturer,’’ a Samsung official said.
``Currently, we are not considering strengthening ties with panel suppliers. However, there is a strong possibility to set up partnerships with either local or rival suppliers,’’ the official added.