Companies

Samsung, LG approved for $6b China LCD plants

(Agencies)
Updated: 2010-12-02 13:15

Samsung Electronics and LG Display said on Dec 2 they have received official approval from China to build $6 billion worth of flat screen plants in the fast growing TV market.

Asian makers of liquid crystal display (LCD) screens are rushing to set up production bases in China, which is expected to become the world's biggest LCD TV market within a few years, according to industry forecasts.

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Both Samsung and LG, ranked as the world's No 1 and No 2 LCD makers, respectively, said they were informed over the weekend by the Chinese provincial governments that the central government had decided to approve their investment plans, confirming a Reuters story issued in early November.

Samsung plans to build a 7.5-generation LCD plant in Suzhou, Jiangsu province with a 2.6 trillion won ($2.26 billion) investment, and LG Display is planning to spend $4 billion to build an 8th-generation plant in Guangzhou, Guangdong province.

Most companies have so far kept only back-end assembly lines in China to protect their advanced technologies but growth prospects for the Chinese market now outweigh caution over intellectual property.