Friday, May 02, 2008

Samsung to Make an Outsourcing Deal of LCD Panel with TCL

Samsung is the world’s largest liquid crystal display (LCD) panel makers. This South Korean company has fame for its LCD screens. Now, Samsung Electronics Co., Ltd. (SEO:005930) is planning to outsource some of its works to China based television maker TCL. TCL will be assigned for some modules which will get into production in 2009. A Samsung spokeswoman recently talked about this issue. However, she could not give any details about the size of the deals, but she said that it was going to be the first overseas LCD manufacturing deal.

Reuters reported:

"Production of the modules is scheduled to start in 2009," a Samsung spokeswoman said.

She declined to disclose the size of the deal but said it was Samsung's first overseas LCD contract manufacturing deal. The spokeswoman denied local media reports that TCL could use some of the assembled modules to make its own television sets.

Samsung’s LCD division has seen excellent first quarter profit and the company is now contemplating to open a new LCD panel line in South Korea in order to meet the increasing global demand for flat screens. Samsung has module assembly plants in China and Slovakia and now it is looking to make a deal with TCL. So, it shows the company is expecting a huge demand for LCD panel in the global market.