LG initiates new LCD production line

Thursday, March 12, 2009, 5:06
Technology
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lg_scarlett LG has started off its LCD panel production this week at its new US$1.6 billion plant in Paju complex in South Korea. LG has decided to use this production line to make displays for big-screen TVs. Interestingly, LG has made this move a little before rival Samsung Electronics was expected to start its own new LCD factory. According to LG, its latest Display plant is based on the “8th generation” production technology. This technology is special in the respect that it can be used to manufacture sheets of mother glass. These sheets are nothing but the large glass panels on which a lot of LCD screens can be made. The size of these sheets of mother glass is expected to be 2.2 meters by 2.5 meters. The “8th generation” technology does justice to its name because each generational process technology reflects certain screen sizes because they fit on the mother glass sheets with minimum wastage of material. LG has decided to use the plant to manufacture 32-inch, 47-inch and 55-inch LCD panels.

According to LG, it is expecting the monthly capacity of this line to be 20,000 sheets of mother glass. The company aims to increase this figure to 83,000 sheets per month by the end of this year. Interestingly, LG Display is right behind Samsung Electronics as the number two LCD TV maker. Now that it has opened its new plant, it aims to gain additional sales. The ever so expanding LCD TV market and LG’s decision at this time to open a new manufacturing unit seem to be a good combination. According to DisplaySearch, the global market for LCD televisions is expected to grow from 134 million units in the year 2008 to 181 million units in 2011.

But a very strong competition in this market has made even big players like LG to push down its LCD panel prices in recent months making it difficult for it to keep big profit margins. But it is widely anticipated that this year, the prices of LCD TVs will rise steeply. Samsung Electronics and Sony, under the joint production S-LCD, have announced to start their new 8th generation LCD line this year. Their US$1.8-billion plant is scheduled to open in April this year at Tangjeong in South Korea.