It seems Samsung can’t get enough 40″ LCD TV panels from its joint venture S-LCD with Sony and its new, and second, G7 plant located in Tangjeong, South Korea. Although the new G7 plant has been operational only about 3 months, so capacity is probably being limited with normal ramp issues such as yields.
Samsung has tapped AUO as a supplier of 40″ LCD TV panels. This news is interesting because AUO’s fab is optimized for 42″ sizes, not 40″. AUO will be throwing away a lot of glass making 40″. Of course, throwing away a bit more glass is much better than making 42″ panels and storing them in inventory because there aren’t any customers. Of course, that could change as I have seen very aggressively priced 42″ LCD TVs here in the US going for $1800. AUO has begun pilot production of 40″ panels and will enter mass production of 40″ in the fourth quarter of this year.
Image: AUO’s G6 located in Taichung, Taiwan
It will be great for us as 40″ and 42″ continue to beat each other up and prices come down. I’m looking forward to a Full HD 42″ LCD TV with LED backlights going for $999 soon by fourth quarter of 2007. I can’t wait!
Source: The Taiwan Economic News