South Korean Government to Approve China LCD Plant Investment

Samsung and LG Display have plans to build TFT LCD manufacturing plants in China. The South Korean government worried that key engineering know-how would leak to Chinese competitors. Now the government seems very likely to approve of Samsung and LG Display’s plans. The Chinese government is also eager to have both companies set up shop and is reportedly offering them enticing incentives. Locating LCD panel manufacturing capabilities in the middle of what is expected to be the largest LCD TV market in the world becomes a strategic advantage: closer ties with China-based LCD TV integrators, lower cost of distribution, and faster reaction to market conditions. Samsung plans to build a LCD fab in Suzhou while LG Display is eying Guangzhou. The South Korean government is expected to make a decision next month. Source: The Chosun Ilbo

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