LG.Philips LCD, a leading manufacturer of thin-film transistor liquid crystal display (TFT-LCD) technology, announced that it has forged a strategic alliance with Toshiba Corporation (TSE: 6502) to jointly develop their positions in the growing European LCD TV market which is emerging as one of the world’s largest markets for LCD TVs.
Under the terms of the agreement, Toshiba will take a 19.9 percent equity participation in LG.Philips LCD’s subsidiary in Poland currently under construction in Wroclaw, Poland. In addition to this direct investment, the new partnership will allow both companies to work closely together on better aligning new product development and manufacturing goals. Establishing better global customer alignment is one of the stated goals of LG.Philips LCD. Toshiba will also benefit from this relationship by securing a steady supply of LCD panels from this plant.
Construction of LG.Philips LCD’s LCD module plant in Wroclaw, Poland, began on June 14, 2006. A module line with annual production capacity of 3 million units is scheduled to be complete by the first quarter of 2007.
According to DisplaySearch, Europe accounted for 41 percent of the global LCD TV market in 2005 and the European LCD TV market is expected to grow at a CAGR of 35.4 percent from 2005 and expand more than three-fold by 2009.
to Daily News