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LG Display considering new LCD production line

Written by James Delahunty (Google+) @ 24 Feb 2010 4:59 User comments (2)

LG Display considering new LCD production line LG Display has increased fears of rapid supply growth of LCD panels by announcing it is considering constructing a new LCD production line to meet demands. Manufacturers of LCD television products have been enjoying a healthy level of demand for LCD flat-screens, bolstered recently by Chinese holidays and sporting events like the Winter Olympics.
However, concerns are taking root in the industry that it may return to a state of oversupply as manufacturers beef up production to capitalize on the demand. Controlling supply is important for players in the industry to maintain profit margins for the technology.

"Although demand is strong, growing capacity will become increasingly burdensome for the industry," said Jason Kang, an analyst at NH Investment & Securities. "Supply is already growing and the growth will be faster next year."

LG plans to begin operation of a separate production line in the first half of 2010, while Taiwanese rivals are increasing factory utilization. "We are considering increasing capacity because we have been unable to meet all client demand for some time," said an LG Display spokesman. "But nothing has been decided yet."

LG Display CFO James Jeong revealed to investors just last month that the company was meeting under 90 percent of orders received and that the situation was likely to continue for months.

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2 user comments

124.2.2010 22:06

I really don't see what the fuss is about, if you expect more demand they you make provisions for it, build more lines, etc. It's as simple as that. Trust me, these people in LG ARE NOT hurting for money by any means, and there's no reason for them to act scared like a 5-year-old, it's as plain and simple as that.

225.2.2010 1:23

Yea, fear? What is what all about.

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