By Kim Yoo-chul
Staff Reporter
Samsung Electronics, the world’s No. 1 manufacturer of liquid crystal display (LCD) TV sets, clarified on Wednesday that it will stick with the current strategy against Japan’s Sony to sell finished panels known as ``modules.’’
``We don’t have any plans to change our policies toward the Japanese TV set maker,’’ a Samsung spokesperson said.
The remarks came amid speculation that Sony had officially requested the South Korean strategic partner to provide unfinished LCD panels or ``cells’’ to back up its ongoing aggressive moves to raise its global share of LCD TVs by propelling sets at discounted prices.
``Cell’’ is a term in the flat-panel industry that commonly refers to the status of a glass panel before key parts, such as backlight, are affixed. This process costs half of what it costs to make an LCD panel.
``Recently, Sony verbally requested that we offer such parts for tests. However, that doesn’t necessarily mean anything else,’’ another Samsung official told The Korea Times.
``It would be better for Sony to buy finished products capitalizing on the industry’s mainstream 40- and mid-50 inch level from S-LCD rather than operating its own (more costly) plant,’’ the official added. According to local reports, Sony has been known to churn out finished LCD panels in its TV set plant in its hometown with a monthly production capacity of 1 million in 2008.
Samsung Electronics and Sony established the joint LCD venture called `S-LCD’ in South Korea with an investment of 2 trillion won in 2003. Since then, the two have been enjoying a honeymoon phase, with Sony buying half of S-LCD’s output.
But the world’s No. 2 LCD TV set maker recently formed an alliance with local rival Sharp to develop next-generation displays of over 60 inches, which put pressure on Samsung to maintain its leadership in global LCD TVs.
The Japanese player has been bolstering its share through mass marketing in North American and Chinese markets.
Kwon Young-soo, chief executive of LG Display, has recently blasted such price cuts, saying there is no reason for Sony to sustain the risky low-pricing tactics.