LG Display will be a joint venture with Cree LED packaging factory in Nanjing

According to the topology reports, second of the world's largest LCD LG Display panel factory and the American Cree company in Nanjing China joint venture LED packaging company, formally enter the LED industry, hoping to reduce the LED backlight notebook computer panel production cost, and avoid possible patent issues, grasp the sources of supply of LED. In addition, LG Display also intends to seek partners in mainland China, the joint venture set up LED backlight module factory, hoping to simplify the notebook computer and TV backlight module production line, reduce production costs.

According to market research firm Insight Media data, LED backlight application in medium and small size panel has almost completely replaced the traditional cold cathode fluorescent lamp (CCFL), and LED backlight module in the large-size panel shipments are expected to reach 150 million in 2012. Market forecast 2008 LED laptop backlight module market penetration will reach 10% to 15%, in 2009 there is a chance to jump to 30% ~ 40%. As a result of the follow-up of the world's notebook brand manufacturers launched new products almost all use LED as backlight, is expected to 2 ~ 3 years later, LED notebook panel will replace the existing CCFL backlight panel.

In 2007, Cree acquired a Chinese lighting company to expand its business scope. But with other companies acquiring contracts to install lighting in new buildings in China, Cree faces the challenge of developing new businesses. LG Display is also working with the original Chinese manufacturers to negotiate the establishment of the LED backlight module factory plan. Sources said, LG Display is exploring the possibility of the establishment of 50% stake in each. He said, LCD hopes to simplify the notebook computer and television mode production line to produce synergy.