LG Display CEO Young Soo Kwon, commenting on competitor AU Optronics (AUO) receiving approval to set up a 7.5G TFT-LCD panel production plant in China, has claimed that 8.5G is more competitive than 7.5G and his company will become the largest panel supplier in China.

Kwon said LG Display has yet to make a concrete plan for setting up an advanced plant in China and will need further discussions. He remarked that making an early start does not guarantee advantage, as 8.5G and 7.5G are different lines.

He noted that 8.5G is supported by better equipment and is more cost competitive. Its substrate size is suitable for 55-, 47- and 32-inch cuts, while 7.5G has economic cuts of 42- and 47-inch, he said, adding that LG Display aims to become the top panel supply in China in 2011.

Although the panel inventory in the market was too high in the second half of 2010, Kwon said short supply will start emerging in the second quarter of 2011 and shortages will be most serious in the third quarter.

High prices of LED-backlit LCD TVs dampened the growth of the market in 2010, but Kwon expects LED-backlit TV prices to drop significantly in 2011. As for 3D TV, with the mass production of polarizer 3D TV panels, he is very optimistic about the 3D TV market in 2011.

The global LCD TV market is expected to reach 250 million units in 2011, with 3D sets accounting for 10-20%, Kwon said, adding that demand for LG Display's panels from China is expected to reach 40 million units in 2011, of which 20% will be 3D models.

LG Display will cooperate with Skyworth, Hisense, Haier, Changhong Electric, TCL and Konka, and Kwon believes that shutter 3D technology will be phased out of the market soon and polarizer 3D technology will account for 70-80% of the total 3D TV market.

LG Display CEO Young Soo Kwon
Photo: Siu Han, Digitimes, December 2010