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The South Korean electronics giant LG Display plans to build an
advanced liquid-crystal display factory in Guangzhou to capitalize
on the China's fast-growing flat-screen television market, the
company reported yesterday.
The world's second-largest liquid-crystal display (LCD) maker
said in a statement that the company signed a preliminary agreement
on Friday with the Guangzhou city government to build the new
plant, which is expected to be the biggest in China.
The deal, which is still awaiting approval by the South Korean
government and the board of Seoul-based LG Display, is estimated to
cost as much as $4 billion, according to Maeil Business
Newspaper.
LG Display did not disclose details about the new plant, except
that it would be an eighth-generation facility capable of making
large-size television panels.
That is three generations ahead of China's most advanced display
manufacturing plant, which is owned by domestic LCD maker BOE
Technology Group.
Global LCD television shipments increased 27 percent to 30
million in the second quarter, led by demand from China and North
America, the research firm DisplaySearch reported last week.
The research firm estimated that the number of LCD TVs sold in
China will likely jump 76 percent to 23.6 million this year.
The government's recent effort to offer subsidies to television
buyers in rural areas is expected to further stimulate the
market.
Analysts said the current financial crisis might encourage
domestic electronics goods makers to reconsider their traditional
way of importing expensive LCD displays from overseas
providers.
In June, China's largest LCD panel maker, BOE Technology Group,
raised $1.76 billion through share placement to expand its LCD
production capacity.
The company is building a sixth-generation factory in Hefei in
Anhui province. BOE also plans to build a new LCD production line
in Beijing next year the company reported.
The world's largest LCD maker, Samsung Electronics, and Japan's
largest LCD TV maker, Sharp Corp, also have expressed interest in
building factories in China.
Editor: Olivia
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