Samsung, LG agree to buy panels from each other

SEOUL, Aug. 25 (Yonhap) -- South Korea's electronics giants Samsung Electronics
Co. and LG Electronics Inc. agreed Tuesday to purchase liquid crystal display
(LCD) panels from each other, government officials said.
Under the deal, Samsung Electronics will buy at least 40,000 17-inch wide LCD
computer-monitor panels every month from LG Electronics' display unit LG Display
Co., while LG Electronics will buy back the same number of 22-inch wide panels
from Samsung's LCD division, the Ministry of Knowledge Economy said in a
statement.
The cross purchase between the two rival companies has been strongly encouraged
by the South Korean government, which aimed to boost the South Korean
manufacturers' leadership in the LCD market.
Samsung Electronics and LG Display, the world's top two flat display makers, have
been recently faced with new competition from Chinese companies besides existing
Taiwanese and Japanese competitors.
Market researcher iSupply expected a robust recovery in the global LCD market
during the second half of the year, predicting the global shipments of LCD panels
will rise to 518 million units in 2009, up 18.6 percent from 2008.
ygkim@yna.co.kr
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