Beijing approves Samsung, LG flat panel plants

Samsung (005930.KRX, 005935.KRX, SMSN.LSE, SMSD.LSE) and LG Display (LPL.NYSE, 034220.KRX) have received approval from China’s National Development and Reform Commission (NDRC) to become the first foreign groups to set up advanced LCD panel plants in the country, the Financial Times reported. The approval for Samsung and LG – the world’s two biggest makers of flat panels for televisions – highlights China’s shift into complex, high-tech production. Though Chinese firms have been assembling flat-screen TVs by using Taiwan-made LCD panels, they have lacked technical expertise to produce large-sized panels on their own. Samsung plans to spend 18 months building a US$2.3 billion plant in Suzhou that will produce 7.5-generation LCD panels. LG intends to set up an 8.5-generation facility in Guangzhou for US$4 billion.