LG, Samsung, duel over panels

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LG, Samsung, duel over panels

Will it be 40-46 inches, or 42-47 inches? Samsung Electronics and LG Philips LCD are competing to set a standard size ― not for women’s clothes, but for liquid crystal displays. The two makers of these flat screens, known as LCDs, are both in the process of building seventh-generation production lines. The problem is that standards have not been set yet for seventh-generation screens. Samsung Electronics has already begun building its factory facilities last year to produce 1,870 millimeter (73.6 inch) x 2,200 millimeter sheets, while LG Philips LCD announced yesterday that it is going to make 1,950 millimeter x 2250 millimeter sheets beginning next year. From their sheets, Samsung can cut eight 40-inch panels or six 46-inch panels; LG Philips will be able to create eight 42-inch panels or six 47-inch panels. The measure of an individual panel is its diagonal length. If consumers flock to only one of the two sizes, one maker will see some massive losses. Samsung’s plan until 2010 ―which includes seventh- to 10th-generation panels ― is to invest 20 trillion won ($19.1 billion). LG Philips is spending 5.3 trillion won for its seventh-generation panels. Industry analysts say that the key factor is how many television assembly companies the two panel makers can get on their side. Samsung said it is increasing the supply of 40-inch panels from its fifth-generation production line to major television makers such as Diboss, Harsper Co. and Hyundai ImageQuest. LG Philips is pinning its hopes on manufacturers in China and Japan, which will soon release products that have its 37-inch displays. Both companies are discounting their panels’ prices. The duel is also related to a rivalry between the major Japanese television makers Sony and Sharp. Samsung is in the same position as Sony with its 40- and 46-inch models. LG Philips is with Sharp, both firms having made 37-inch displays. This is not the first time these two electronic giants have collided. In 2002, they fought in the computer monitor arena, in which LG’s 15- and 18-inch monitors won an edge in the market over Samsung’s 17- and 19-inch monitors. by Wohn Dong-hee, Lee Hyun-sang
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