LCD Production Rivalry Between Samsung and LG.Philips Intensifies

By Niladri Sekhar Nath

 

Samsung Electronics is all set to begin production of liquid crystal display TV panels. The leading manufacturer of flat screens has decided to go ahead with its production plan three months prior to schedule. According to Reuters, Samsung's latest seventh-generation production line, Line 7-2, will manufacture 45,000 substrates in the beginning. Each of the 45,000 substrates is capable of producing eight 40-inch panels.

 

Samsung also has plans to enhance production in the year's second half. The company aims to produce 90,000 substrates per month. Samsung announces that the total investment will reach 4.13 trillion won or $4.09 billion.

 

Analysts are of the view that Samsung has rescheduled its production plan after its rival LG.Philips LCD Co. Ltd. has announced that it has started mass production at its own "seventh-generation" line for large-sized television panels.

 

However, the rivalry between Samsung and LG is not going down well with the experts. They fear that the LCD industry is likely to suffer overcapacity in 2006. With both the LCD giants increasing output, the industry will soon witness excess numbers of LCD TV panels being produced.

 

Samsung has already introduced Line 7-1 in collaboration with Sony Corp. The production line churns out 60,000 substrates per month.

 

LG.Philips also doesn’t want to stay too far away. The company will also initially produce 45,000 substrates per month. It will increase capacity to 90,000 substrates by the first quarter of 2007.