By Kim Yoo-chul
Staff Reporter
LG Display, the world's No. 2 supplier of liquid crystal display (LCD) panels after Samsung Electronics, said Monday that it will set up a joint venture to produce LCD modules and flat-screen TV sets using LCD panels with Taiwan's Amtran Technology.
As the Korea Times earlier reported, the 51:49 joint venture, with Amtran holding the latter, is to be set up in Suzhou, eastern China. The $20 million plant will produce 3 million LCD modules and 5 million LCD TV sets annually from 2009, LG Display said.
"The strategic partnership will help LG Display grab a chance to sell more LCD panels from medium-sized TVs via Amtran’s distribution channels in North American markets," its spokeswoman Jacquelyn Park said.
Amtran mainly makes lower LCD TV sets under the Vizio brand for its U.S. partner, Vizio Inc. Vizio is ranked the No. 3 flat TV sales maker in the second quarter in the North American market after Samsung Electronics and Sony, according to market research firm DisplaySearch
LG Display has unexpectedly been busy expanding its customer base by securing a stable, long-term source of demand for its panels, after Philips Electronics of the Netherlands has gradually been selling off its stake in LG to 13.2 percent.
LG Display is majority-owned by LG Electronics, which has a 37.9 percent stake in the firm.