Digital TV producers boost foreign plants

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Digital TV producers boost foreign plants

Korean electronics manufacturers are increasing overseas production of digital television sets, along with their research and development efforts there. Various benefits, such as tax breaks, from producing in other countries are expected to help maintain the trend. “Digital television sets are high-margin products, while manufacturing them abroad can save labor costs and is subject to tax breaks,” an industry official said. “Foreign production is going to accelerate.” Samsung Electronics Co. started manufacturing advanced television sets at its existing plants in 2001. A plant in Tijuana, Mexico began production of digital television sets in 2001, while plants in Barcelona, Spain and Tianjin, China began production last year. Samsung’s plant in Jakarta, Indonesia started assembly last month. The Spanish plant only manufactures liquid-crystal and plasma display television sets, after transferring all its cathode ray tube television production to its plant in Hungary. With the beginning of digital broadcasts in Europe, Samsung plans to produce digital television sets in Hungary and Slovakia. It also aims to convert its 11 television manufacturing operations around the globe into digital set production. Foreign production is expected to account for 40 percent of all digital television sets produced by Samsung this year. LG Electronics Co.’s overseas digital television set production jumped to 40 percent of its entire production this year, from 25 percent last year. Its factory in Shenyang, China began annual production of 30,000 plasma display panel television sets in July 2001. Its plant in Reynosa, Mexico followed suit in November 2002, and its Wales factory in March. LG aims to complete construction of its plant in Nanking, China in October, which will produce 240,000 plasma display panel modules every year. LG will modify its Polish factory by August 2004 in order to assemble 200,000 digital television sets annually. Daewoo Electronics Co. is producing digital television sets only at its plant in Gumi, but it will soon start to remodel its plants in Poland and Mexico. Daewoo aims to raise foreign production of digital television sets to 10 percent of its total this year. The domestic firms are also opening more research and development centers overseas. Samsung, for example, has set up a digital television software development center in Noida, India. by Kim Chang-gyu
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