Samsung second seven line production next year LCD TV price game

According to foreign media reported on October 31st, the world's largest LCD panel manufacturers Samsung Electronics announced Monday that the second "7 line" factory will be in April next year officially started production of large format LCD panel.

Samsung Corp said in a statement, this code 7-2 LCD substrate line "factories" seventh generation "of 1.87 x 2.2 meters wide, Samsung, has completed the test run of the production line. Starting in April next year, the production line is expected to produce 45 thousand substrates per month (each substrate can be cut out of the 8 inch LCD TV screen panel 40). Previously, Samsung Corp has said that the production line is expected to put into operation in the first half of 2006.

It is reported that the second half of next year, 7-2 line will reach its 100% capacity, will produce a monthly base of 90 thousand.

Samsung in the 7-2 line has invested 41300 won capital. Currently, the company and SONY joint venture set up 7-1 line monthly production capacity has reached 60 thousand.

Industry analysts are concerned that, with the further expansion of Samsung and LG PHILPS LCD panel next year to further expand production capacity, the industry may face the risk of excess capacity.

As we all know, the larger the size of the glass substrate can be cut out more liquid crystal panels, so that productivity can be greatly reduced, but also can effectively reduce costs. LCD TV prices also have an upstream raw material base.

Earlier this month, Samsung LCD panel business general manager Lee Sang-Wan had expected, by 2010, the global LCD TV market is expected to exceed 100 million units. This figure is only 15 million to 20 million units this year. Samsung also said it is planning to build a 8 generation line in 2006.

At midday on Monday, Samsung Electronics shares rose 1.1% to close at $55 thousand and 200.