LG to Buy LCD Panels From Sharp
By Kim Yoo-chul
Staff Reporter
South Korea's LG Electronics has confirmed a report that it will buy LCD panels from its Japanese rival Sharp to meet growing demand for pricey flat-panel television sets.
``We will buy 2 million 32-inch panels from the world’s No. 3 LCD TV manufacturer and then follow up with purchases of 52-inch panels,’’ an LG spokesperson said on Thursday.
The spokesperson, who asked not to be identified said his company had been considered to buy panels over 50-inch level from its affiliate LG Display, however, LG has decided such a decision attracted by competitive prices.
LG Display, the world’s No. 2 LCD panel supplier after Samsung Electronics, has been massively producing 40-inch panels. The company plans to churn out over 50-inch panels with the eighth-generation line this year.
``We don’t have any problems with LG Display. What we want is to achieve this year’s sales target of some 14 million LCD television sets via stable procurement channels,’’ the spokesperson added.
Some experts say South Korean flat-screen makers need to strengthen bilateral relationships amid the ongoing aggressive attack by Japanese competitors.
``It will be difficult for Samsung Electronics and LG Electronics to solidify partnership as they have been rivals in the global flat-screen market,’’ an LG official said.
Osaka-based Sharp will now rush to boost its panel business with the addition of a leading South Korean TV producer to its customer list.
Recently, Samsung’s strategic partner Sony struck a deal with Sharp to jointly develop panels over highly competitive 60 inches.