Panel-makers ramp up production

Korea’s two largest liquid crystal display makers both decided to ring in the New Year the same way: by announcing the start of mass production of large-sized television panels. LG Philips LCD Co. yesterday churned out its first 42-inch LCDs from its seventh-generation production line in Paju, north of Seoul. The seventh-generation plant, which the company claims is the largest in the world, is able to produce eight 42-inch screens, or six 47-inch screens, cut from a single substrate. The LCDs, however, could not be mass produced until two years after the construction on the plant started; the company ran pilot operations in late November last year. The company, a joint venture between LG and Philips Electronics of the Netherlands, said it plans to gradually expand production of 47-inch models in order to dominate the large-sized LCD TV market. It hopes to be producing 45,000 sheets of mother glass substrates per month by the third quarter of this year and 90,000 sheets by the first quarter of 2007. Yesterday, Samsung Electronics Co. also said it launched commercial operations at Line 7-2, its second seventh-generation LCD production line in Tangeong, South Chungcheong province. The 7-2 line was designed to produce 45,000 panels per month for LCD televisions larger than 32 inches. Currently, Samsung is operating another seventh-generation line, dubbed 7-1, through its joint venture with Sony. Mass production commenced in April 2004 and the plant’s full capacity of 60,000 substrates per month was reached in October last year. The company plans to increase its production capacity to 75,000 plates by July this year. Samsung aims to produce a combined 165,000 sheets per month or 1.32 million 40-inch panels at the two lines when its 7-2 line reaches full capacity, churning out 90,000 substrates a month. “Because two companies operating the lines will lead to price cuts, panel prices will fall, eventually boosting demand for panels larger than 40 inches,” one analyst said. by Seo Ji-eun