LG Display who is working closely with Apple to deliver new OLED display screens, a new tablet device and a new Apple TV is set to spend close to $4 Billion dollars on a massive new TV manufacturing plant in China.
The Korean Company who will launch a 15″ OLED Display by Xmas earlier this week signed a nonbinding memorandum of understanding with the Guangzhou government to build its first LCD manufacturing facility in China.
Shortly after the announcement Samsung responded claiming that it was also looking at investing in a new a flat-panel manufacturing plant in China.
According to the Wall Street Journal the new plant will use advanced technology, meaning it can make LCD panels measuring 50-inches diagonally.
South Korea’s government also said Tuesday that Samsung and LG Electronics Inc. have agreed to purchase LCD panels from one another from the end of September in a rare move by the two hometown rivals.
The move will likely be a threat to Taiwanese LCD makers such as AU Optronics Corp. and Chi Mei Optoelectronics Corp. because the deal would replace LCD imports from Taiwan. The South Korean government said it expects the deal to improve the country’s trade balance by about $83 million.