LG.Philips to boost LCD capacity by 22%

Seoul: LG.Philips LCD Co. Ltd, the world's second-biggest maker of large liquid crystal display (LCD) panels, said yesterday it would increase the capacity of its biggest TV panel production line by 22 per cent to meet growing demand for large LCD televisions.

LG.Philips has suffered losses in the past three quarters due to falling panel prices, forcing the company to trim output last year.

However, the company is betting on rapid growth in demand for flat-screen TVs later this year.

"The company believes that this move will help strengthen its market leadership and competitiveness as well as enhance its presence in the global LCD TV market," LG.Philips said in a statement.

Volumes

LG.Philips said in the statement that the input capacity of its "seventh-generation" LCD production line, located in Paju, South Korea, would be raised to 110,000 sheets of motherglass per month by the third quarter of 2007, from the current 90,000.

The line's input capacity averaged 78,000 sheets per month in the fourth quarter of 2006, according to LG.Philips, jointly set up by LG Electronics Inc. and Philips Electronics.