Samsung Electronics Co. Ltd., the world's top LCD maker, plans to double the output of its liquid crystal display module plant in eastern China's Suzhou city to meet growing demand, industry sources said.
The South Korean company has already started on the project, which currently assembles around 1 million LCD units per month to be used in flat screen TVs and PC monitors, said the sources. One source said the expansion would be completed by the end of this year.
Foreign and domestic companies are racing to expand LCD production in China, with demand expected to increase rapidly for notebook computers and flat screen TVs. Last month, Japan's Nitto Denko Corp. said it would spend about $165 million to build a new factory in China to make LCD panels to meet demand for flat screen TVs. Local players are adding to the competition. TCL Corp, a major Chinese electronic appliance maker, is in talks with partners for a possible LCD plant in the booming southern town of Shenzhen near Hong Kong, industry sources said.
Samsung manufactures the LCD screens themselves only in South Korea, but runs overseas plants to assemble the screens and other parts to make LCD modules for televisions and other display units.
The electronics giant aims to boost the market share for its PC monitor sales to 50 percent in China after the plant expansion is finished. It is unclear by how much Samsung plans to increase its investment in the Suzhou plant -- established in late 2002 with initial investment of $300 million.
Samsung is trying to consolidate its position as the world's biggest LCD maker amid fierce market competition from rivals including LG.Philips LCD Co. Ltd. and Taiwan's AU Optronics Corp. Samsung's latest plan to expand its Suzhou LCD plant could be just the beginning of a new round of investment in China by the company, the sources said. Samsung also makes DVD players, televisions, digital cameras, laptops, and other electronic appliances in other factories in Suzhou. Rivals, including Sony Corp. and Philips Electronics NV, also have plants there.
The source noted that Samsung is also considering increasing investment in its laptop plant in Suzhou, though a plan has yet to be finalised.
Samsung has another LCD module factory in the northern city of Tianjin, near Beijing. The sources said Samsung was also considering increasing its investment in the Tianjin plant.
Source:未知