Panel display manufacturer Samsung Display said on Friday its firtst LCD factory in China has started to operate and join the rivals of expanding capacity in the country, despite the fact that China's TVs market shranks and panel displays are oversupply.
Samsung Display, a subsidiary of Samsung Electronics is building multi-million LCD plants in China, as well as his domestic competitor LG display. And this will help them compete effectively aganist those little-known Chinese makers.
BOE Technology Group, TCL Group's subsidiary COST are shaking the status of Samsung Display and LG display and gaining local market share with increasing sales.
According to the data from IHS iSuppli and Samsung Electronics, global LCD shipment fell in the third quarter from the traditional weak second quarter for the first time. Besides, the demand of China and Europe is shrinking.
However, panel makers are still expanding their capacity in China to seize a larger market in China's fast-growing consumer electronics industry. In China, many households yet to replace old ray tube TVs with panel display TVs.
Samsung Display, whose 84.8% stock is shared by Samsung Electronics, is unlisted.
BOE Technology is also planning to raise 46 billion yuan to build panel production lines and increase its stake in its LCD venture BOE Display Technology.
Written by Nicolas Yang
