LG Display has set up a joint venture (JV) with AmTRAN Technology, an OEM/ODM LCD TV company in Taiwan, to better position itself in the LCD TV market. The JV will focus on the production of LCD modules and EMS (electronic manufacturing system)-based LCD TVs.
With an investment of US$20 million, the JV company located in Suzhou, China will be named Suzhou Raken Technology Ltd. LG Display and AmTRAN will respectively hold a 51% and 49% equity position in the new company.
Under the agreement, an LCD module line will be 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.
LG Display said the collaboration with AmTRAN is expected to help the company 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.