Samsung, LG Said to Order Sub-32" TFT-LCD Panels From Taiwan

Taipei, April 22, 2009 (CENS)--Since late February, South Korean LCD TV makers Samsung and LG have been placing big-ticket sub-32" TV panels with local thin film transistor-liquid crystal display (TFT-LCD) panel suppliers such as AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. (CMO), according to the Chinese-language economic daily newspaper Economic Daily News (EDN), sister publication of the Taiwan Economic News.

The rush orders have forced AUO and CMO to schedule overtime work.

Quoting reports from mainland Chinese media, EDN said that Samsung has been changing its strategy in the Chinese LCD TV market by promoting smaller (sub-32") and less-expensive models to tap opportunities created by the official subsidies for home appliance buys in rural areas. Korean TV makers have placed orders for 19-, 22-, 26-, and 32-inch panels.

Industry sources said that the supply of sub-32" panels in China saw a shortage since March.

David Hsieh, president of DisplaySearch Taiwan Office and vice president of DisplaySearch Greater China, pointed out that orders from Samsung has been accounting for about 30% of AUO's and about 23% of CMO's total panel shipments, making the Korean company a top customer to Taiwanese panel makers. AUO and CMO might delay deliveries to Chinese customers if their capacities cannot meet Samsung's urgent needs, he said.