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LG Display announced today that it has established a joint venture with AmTRAN Technology, a fast growing OEM/ODM LCD TV company in Taiwan, to better position itself in the LCD TV market. LG Display and AmTRAN Technology signed an agreement to set up a joint venture that will produce LCD modules and EMS(electronic manufacturing system) based LCD TVs. The joint venture company, to be named Suzhou Raken Technology Ltd., will be set up in Suzhou, China, and funded with an investment of USD 20 million. LG Display and AmTRAN will each hold a 51% and 49% equity position in the new company. And the joint venture will be run on the spirit of full collaboration between both LG Display and AmTRAN.
Under the agreement, an LCD module line will be newly constructed in AmTRAN's existing TV plant in Suzhou. The plant is scheduled to produce 3 million LCD modules and 5 million LCD TV sets annually starting early next year.
The collaboration with AmTRAN is expected to help LG Display to expand its customer base by securing a stable, long-term source of demand for its panels. Moreover, the production of LCD modules and LCD TVs in a single location should lead to the use of fewer components through joint R&D and significantly lower packaging and logistics costs. The joint venture serves as a successful example of a win-win-win situation for panel supplier, OEM company, and brand TV maker.
Young Soo Kwon, President and CEO of LG Display said, "We decided to establish a joint venture with AmTRAN to provide differentiated value for our customers and consumers. We will reinforce our basic strengths through successful management of the joint venture and P8, which is scheduled to start mass production early next year."
View at TechPowerUp Main Site
Under the agreement, an LCD module line will be newly constructed in AmTRAN's existing TV plant in Suzhou. The plant is scheduled to produce 3 million LCD modules and 5 million LCD TV sets annually starting early next year.
The collaboration with AmTRAN is expected to help LG Display to expand its customer base by securing a stable, long-term source of demand for its panels. Moreover, the production of LCD modules and LCD TVs in a single location should lead to the use of fewer components through joint R&D and significantly lower packaging and logistics costs. The joint venture serves as a successful example of a win-win-win situation for panel supplier, OEM company, and brand TV maker.
Young Soo Kwon, President and CEO of LG Display said, "We decided to establish a joint venture with AmTRAN to provide differentiated value for our customers and consumers. We will reinforce our basic strengths through successful management of the joint venture and P8, which is scheduled to start mass production early next year."
View at TechPowerUp Main Site