Samsung and LG deny half of China's panel factory investment

According to South Korean media, Samsung Display and LG Display both intend to reduce investment in advanced LCD panel manufacturers in mainland China, and the investment amount will be cut in half. However, the relevant person in charge of the two companies in China denied the news, "the investment plan has not changed, and the factory was built according to the original plan."

On August 8th, it was reported that Samsung Display plans to reduce the investment of Samsung LCD panel in Samsung from the planned US$3 billion to US$1.5 billion to US$1.6 billion. The monthly production capacity is planned to be reduced from 100,000 pieces/month in the plan. 10,000 pieces / month. LG Group will also cut the investment of 4 billion US dollars of Guangzhou 8.5 generation line by about half to 1.8 billion US dollars, and the monthly output of 120,000 pieces will also drop to 60,000 pieces per month.

Samsung and LG are global panel giants, and their capacity expansion and adjustment have caused strong concern. Regarding the news that this investment has been halved, the relevant person in charge of Samsung said yesterday that “there is no change in the investment plan”, LG also confirmed to the reporter that the investment will be carried out according to the original plan, and mass production will be realized in the second half of next year.

However, the market environment facing the panel industry is changing. According to the latest monthly LCD market report provided by the research institute NPD DisplaySearch to the reporter, the LCD TV panel shipped to mainland China in June fell by 7% from the previous month, 7 percentage points lower than expected. In the third quarter, panel shipments were forecast to fall 2% from the second quarter and 10% from the same period last year.

"The current demand growth is relatively weak, and the demand for LCD TV panels may be further revised in the second half of this year," NPD DisplaySearch pointed out.

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