Technology Reuters.com
Sun Jan 1, 2006. SEOUL (Reuters) - Samsung Electronics (005930.KS: Quote, Profile, Research) , the world's largest maker of flat screens, said on Sunday it was set to start up its newest mass production line for liquid crystal display TV panels, three months ahead of schedule.
The announcement came as second-ranked LG.Philips LCD Co. Ltd. (034220.KS: Quote, Profile, Research) said it started mass production at its own "seventh-generation" line for large-sized television panels.
Analysts are concerned the LCD industry could face overcapacity in 2006, as heavyweights like Samsung Electronics Co. Ltd. and LG.Philips, both based in South Korea, ramp up output.
Samsung's new seventh-generation production line, Line 7-2, will initially produce 45,000 substrates, from each of which eight 40-inch panels can be produced, per month.
The company plans to boost production in the year's second half to full capacity of 90,000 substrates per month.
Total investment in the second line would reach 4.13 trillion won ($4.09 billion), Samsung said.
Samsung, also the world's biggest maker of memory chips, already runs Line 7-1 jointly with Sony Corp. (6758.T: Quote, Profile, Research) , which currently produces 60,000 substrates per month.
Its LCD sales in 2005 topped $10 billion, Samsung said, without elaborating.
LG.Philips LCD will also initially produce 45,000 substrates per month and plans to raise capacity to 90,000 substrates by the first quarter of 2007.
($1=1010.0 Won)
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