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Taipei, Dec. 6, 2005 (CENS)--Several ranking officials of the display department of both Samsung Electronics and LG Electronics of South Korea arrived in Taipei yesterday to negotiate next year's thin film transistor-liquid crystal display (TFT-LCD) panel orders with local suppliers, according to industry sources
The two Korean companies are expected to procure millions of TFT-LCD panels, or about 30% of their needs, from Taiwan next year. Some major local panel makers are expected to win orders from the two big customers, including the top-three on the island AU Optronics Corp. (AUO), Chi Mei Optoelectronics Corp. (CMO), and Chunghwa Picture Tubes, Ltd. (CPT)
Industry sources said that Samsung and LG's officials in charge of display business arrived in Taipei on December 5 for two days of intensive talks with local panel suppliers on panel procurements for next year. A senior official of a leading local panel maker said that about 60% to 70% panels adopted on Samsung and LG's own-brand products are currently supplied by their own panel-production affiliates, Samsung's LCD division and LG.Philips LCD Co., Ltd. (LPL), respectively. They are sourcing the remaining 30% to 40% from Taiwan suppliers
The official stressed that both Samsung and LG are leading global information technology (IT) and consumer electronic brands, and their panel orders contribute greatly to revenues and shipment volumes of Taiwan's panel makers. Currently, AUO, CMO and CPT are the three major panel suppliers to Samsung and LG. AUO and CMO has supplied both LCD monitor and TV panels to the South Korean customers, including the 32-inch TV panels, since AUO's sixth-generation (6G) and CMO's 5.5G panel plants began mass production in the second half this year
Statistics compiled by DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting, showed that in terms of revenues, Samsung was the world's No.1 LCD TV maker (in terms of revenue), in the third quarter of the year, and LG, the No. 5. But in terms of shipment volume, Samsung and LG were the world's top-two suppliers during the period.