LCD investment rises in the mainland
(Shanghai Daily)
Updated: 2006-06-27 11:43
Oversea giants including LG Philips and major Taiwan firms are increasing
investment to build LCD module plants and capitalize on a Chinese mainland
market worth US$2.3 billion.
The growing demand for liquid crystal display units is based largely on
surging sales of computers and flat panel TVs.
Analysts, however, warned that module plants generate limited profit and that
the supply of large-size, high-margin LCD panels will depend on imports for the
next few years.
LG Philips LCD, the world's biggest LCD panel maker, said recently it had
signed a preliminary agreement to build a new LCD module plant in Guangzhou,
Guangdong Province. Meanwhile, Taiwan-based Mindtech Investments Ltd announced a
US$95 million joint deal with Shanghai SVA to establish an LCD module plant in
Shanghai.
"The Shanghai-based plant will operate in line with our other new production
facilities," SVA, which plans to invest several billion dollars by 2010 to build
more advanced LCD panel manufacturing lines, said in a statement delivered to
Shanghai Daily yesterday.
"LCD module manufacturing requires little technology," said Yue Ting, an
analyst at Beijing-based CCID Consulting Co, a research f irm under the Ministry
of Information Industry. "For large LCD TV panels, including 32 inch, 37 inch
and even bigger models, China still depends on imports."
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