The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Homeless women struggle to find place to spend night

  • 3

    More than dozen chaebol scions indicted on alleged drug use

  • 5

    People attempt to cut surging heating costs with creative solutions

  • 7

    Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film

  • 9

    Life prisoner sentenced to death for beating inmate to death

  • 11

    'I was a stock investment addict': psychiatrist seeks to help addicted people through his book

  • 13

    Korea's childbirths hit record low in Nov.

  • 15

    PHOTOSAnother day of heavy snowfall in Korea

  • 17

    Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters

  • 19

    S. Korea to increase joint air defense exercises following N. Korean drone incursions

  • 2

    Koreans stunned by spike in heating costs

  • 4

    Heavy snow hits Seoul, surrounding areas

  • 6

    Netflix series 'The Glory' draws focus to real school bullying

  • 8

    Inflation weighs on households

  • 10

    Kim Hyun-joo says humanity is at heart of action film 'Jung_E'

  • 12

    INTERVIEWPartnerships with Korean companies help Delta Air Lines' post-pandemic recovery

  • 14

    Jang Keun-suk steps out of his comfort zone with 'The Bait'

  • 16

    Gov't to double subsidies for vulnerable households as energy bills soar

  • 18

    BLACKPINK sets 6 more Guinness records

  • 20

    Renaissance aesthetics meets surreal fantasy in Park Min-joon's oil paintings

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
Sat, January 28, 2023 | 13:03
Tech
Samsung, LG Display Have Different Strategies in China
Posted : 2009-09-07 21:08
Updated : 2009-09-07 21:08
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link


Makers Rushing to China, but Oversupply Concerns Remain

By Kim Yoo-chul
Staff Reporter

Chang Won-kie, the head of Samsung Electronics' LCD business, has recently hinted at a strategy transition for Samsung's flat-panel business toward high-end products.

``There are some concerns that sales growth of Samsung's liquid crystal display (LCD) business may stall as the global LCD industry is nearing maturity. Samsung needs to find a new growth engine in the business,'' he said in a weekly meeting of Samsung Group executives.

The remarks have received attention from industry officials and even Samsung executives as Chang's view was clarification that the world's biggest LCD panel manufacturer will gradually depart from its greater focus on displays for traditional uses in TVs, monitors and PC laptops amid the ``China Rush'' by LCD makers.

``By constructing somewhat advanced panel lines in China, Samsung plans to maintain its panel leadership in the overall flat-screen industry. Samsung also will put more focus on nurturing technology required for next-generation panels such as AM OLED and flexible displays using its lines in South Korea,'' a top-ranking industry source told The Korea Times Monday.



Samsung said it is reviewing a plan to build an LCD manufacturing line in China, and in a regulatory filing noted that it will release details within six months.

The Korea Exchange asked Samsung to clarify a report that it is planning to build an 8th-generation LCD line in China. The Korea Times earlier reported that the company plans to invest about 4 trillion won ($3.2 billion) in production facilities in China.

``Chang's comments could be interpreted that Samsung will push a `dual strategy' in the flat-screen business. A panel requiring cutting-edge technology and which will be exported to North America and Europe will be produced in South Korea, while the rest will go into China,'' another ranking industry source said.

LCD panels are used in everything from mobile phones to computer displays to TVs. Samsung runs LCD lines in Tangjeong, South Chungcheong Province. Samsung has secured a sizable amount of land there to possibly build a highly-advanced 11th-generation LCD panel line.

LG Display Still Expansionary Strategy in China

While Samsung is taking a ``dual strategy'' toward flat-panel business, its biggest home-town rival LG Display is making every efforts to gain a ``first-mover advantage.''

Ahead of Samsung, LG said last month it had signed a memorandum of understanding (MOU) with the Guangzhou government to build an LCD manufacturing facility using eight-generation technology to produce LCD TVs bigger than 50-inchs.

LG has been in talks with TPV Technology to set up a joint venture in China. If the deal materializes, then the plant would be LG's third module facility there in addition to ones in Nanjing and Guangzhou.

``LG is making aggressive moves in China,'' a company executive said, asking not to be identified. ``As far as I know, the main reason is that LG has strong client bases with China's local TV set makers unlike Samsung. Coupled with LG Electronics' intensive TV set target, LG Display is maintaining an expansionary strategy which is seen from its recent announcements.''

``Unlike Samsung, LG Display hopes to increase its market share in China by further securing clients,'' Kim Dong-won, an analyst at Prudential Investment, said, adding the partnership with TPV would be a win-win situation for both. TPV is one of the top monitor producers in the world.

Park Hyun of Prudential Investment said the talks with TPV are persuasive for LG Display, considering its expansionary business track in China. ``A partnership with the set maker will allow LG to expand production volumes and strengthen tie-ups with clients.''

LG executives say the moves in China have also been in line with strong panel demand from its biggest shareholder ― LG Electronics, which expects to sell around 25 million LCD TVs in 2010. Last year, it sold 10.5 million.

LG Electronics, which recently overcame its Japanese rival Sony to become the world's second biggest LCD TV maker, said it aims to narrow the market gap with industry leader Samsung within a few years by steadily pushing an expansionary strategy.

Another Oversupply?

Although strategies are different for Samsung and LG, it is natural for global panel makers to head into China.

All of the world's biggest LCD panel makers are in Asia, primarily South Korea, Taiwan and Japan.

Asian LCD makers are rushing to build new factories as panel prices have stabilized since the beginning of this year after plunging last year because of a supply glut. Thanks to production cuts and rising demand from China, LCD prices are recovering steadily and analysts say most producers will return to the black in the current quarter.

Companies are attracted by Beijing's incentives such as low-cost land and the country's large and growing internal market. While demand for LCDs has been tepid in the U.S. and Europe, sales in China have been steady this year, thanks in part to a government program designed to spur sales of consumer electronics in rural areas.

The number of LCD TVs sold in China is expected to jump 76 percent to reach 23.6 million this year, according to Austin, Texas-based DisplaySearch.

In an ambitious move to keep up momentum, Beijing is inviting leading LCD makers to the mainland. Most LCD plants in China use older fifth-generation technology, adopted by Samsung and LG five years ago.

Using larger sheets of glass makes it easier and more cost-effective to produce panels for large-screen TVs.

With Samsung and LG Display, Taiwan's Chi Mei, Japan's Sharp and China's BOE Technology are set to build advanced eighth-generation plants on the mainland.

``The newer plants will operate from the latter half of 2011, at the earliest,'' said an executive at Samsung Electronics said. ``After 2012, profits for major LCD makers might fall due to the industry's possible oversupply. But for the time being, such a possibility is low, considering the strong and sustained demand for consumer electronics in China.''

``China will become the single largest market outpacing Europe and the United States. But competition will become fiercer and fiercer after 2012, casting a slight shadow for Samsung and LG over their profits,'' the executive continued. ``That's why Samsung is shifting its strategy, and LG is securing TV set makers as clients.''

yckim@koreatimes.co.kr
 
wooribank
Top 10 Stories
1People attempt to cut surging heating costs with creative solutions People attempt to cut surging heating costs with creative solutions
2Seoul to work with Hanoi to pursue peace on Korean peninsula Seoul to work with Hanoi to pursue peace on Korean peninsula
3Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities
4More Korean manufacturers enjoy Georgia's hospitality More Korean manufacturers enjoy Georgia's hospitality
5SK E&S retains gov't support for Barossa gas project in Australia SK E&S retains gov't support for Barossa gas project in Australia
6Superintendent of Seoul Education Office gets suspended jail term Superintendent of Seoul Education Office gets suspended jail term
7Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event
8KT&G aims to become global top-tier company KT&G aims to become global top-tier company
9LGES to capitalize on US IRA, Tesla partnership to continue record earnings LGES to capitalize on US IRA, Tesla partnership to continue record earnings
10Middle East 'sales diplomacy' picks up speed Middle East 'sales diplomacy' picks up speed
Top 5 Entertainment News
1Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film
2Kim Hyun-joo says humanity is at heart of action film 'Jung_E' Kim Hyun-joo says humanity is at heart of action film 'Jung_E'
3Jang Keun-suk steps out of his comfort zone with 'The Bait' Jang Keun-suk steps out of his comfort zone with 'The Bait'
4BLACKPINK sets 6 more Guinness records BLACKPINK sets 6 more Guinness records
5Renaissance aesthetics meets surreal fantasy in Park Min-joon's oil paintings Renaissance aesthetics meets surreal fantasy in Park Min-joon's oil paintings
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

wooribank
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group