Long-time rivals Samsung and LG Electronics have agreed on a cross-purchasing deal, a step apparently aimed to survive the ever-fierce competition in the global market for flat TV screens and panels.
"As scheduled, we will supply our 52-inch liquid crystal display (LCD) panel to LG Electronics from July this year as the supply and demand imbalance will be eased thanks to the operation of the second phase of the eighth-generation line in two months,'' Lee Sang-wan, chief of Samsung Electronics LCD division told The
Korea Times.The production capacity from the line is expected to be 60,000 sheets per month, initially _ on a substrate glass input basis.
Lee was attending a display conference held in a Seoul hotel chaired by the Ministry of Knowledge Economy.
Samsung Electronics has so far been refusing repeated calls by LG Electronics to provide larger-sized panels, citing a tight supply in the industry.
"As Samsung earlier clarified, we will also buy 37-inch panels from LG Display depending on the market situation, however, the decision will be made by July,'' Lee said, adding the world's biggest LCD TV set and panel maker is reviewing such a possibility, positively.
Although some technical matters over panel pricing and the technology gap have still remained, experts hope the decision, if realized, will put the South Korean TV manufacturers in a better position to compete with their Taiwanese rivals.
"Cross-purchasing has long been an issue, however, the bilateral tie-up is to help Samsung and LG widen the market gap with their Taiwanese and Japanese rivals,'' a spokesman from Samsung Electronics said.
