SAMSUNG Electronics Co. and LG Display Co., the world s top two flat-panel makers by shipments, have received approval from the Chinese Government to set up liquid-crystal-display (LCD) manufacturing plants in the country, two people familiar with the matter said Friday.
There was some speculation that only one South Korean company would get approval from China due to concerns about a supply glut, but both Samsung and LG Display have won approval from China, said one person, who declined to be named.
The person said an official announcement from China is expected to come soon.
Officials at the Chinese Government didn t immediately respond to a request for comment.
LCD makers are moving to set up manufacturing plants in China as the country is expected to become the world s largest market for flat-screen TVs in a few years. In addition to Samsung and LG, rivals in Japan are also moving to set up facilities to take advantage of growing demand and lower costs.
In the past, LCD makers only had back-end assembly lines in the country due to concerns about technology leak and they kept high-end manufacturing plants at home.
But both South Korean companies are moving to set up advanced LCD facilities to churn out panels used in flat-screen TVs.
In October 2009, Samsung, the world s biggest supplier of LCD panels, said it would set up a joint venture to build a 7.5-generation LCD panel plant in Suzhou in eastern China s Jiangsu Province
LG Display, the world s second-largest LCD maker, also said last year that it will set up a joint venture for a planned US$4 billion 8th-generation LCD plant in China.
In December, the South Korean Government gave its support for the panel makers to export their technology due to the rapidly increasing importance of the LCD TV market in China. (SD-Agencies)
