November 8, 2006
South Korean electronics giant Samsung Electronics has placed an order with Chi Mei Optoelectronics (CMO) for 52" LCD TVs for delivery in Q1 2007.
The deal will make Taiwanese company CMO the world's top producer of 50"-range flat panel LCD TVs. Samsung has also placed orders for 32", 40", and 42" TVs, a deal that makes the company CMO's largest client.
Next year CMO aims to deliver 16 million units to attain growth of at least 60%, according to the Economic Daily News.
Samsung and CMO have already reached an agreement on the number orders and supply, according to EDN sources. CMO president Ho Chao-yang originally hinted at the deal at the 2006 FPD International exhibition in Yokohama in mid-October, where CMO unveiled its 52" second generation LCD TV -- the first of its kind by a Taiwanese company.
Samsung's yearly sales target has been adjusted to 6 million units, positioning the company to overtake competitor Phillips for the world's top position in flat panel TVs.
Samsung Vice President Jun H. Souk said at the FPD exhibition that Samsung plans to build 8th generation plants, which will focus on 52" screens. Samsung, Sharp, and CMO are currently the only producers of 52" screens.
The global market for LCD TVs is growing by a large margin, as shipments have totaled nearly 10 million units this year, and forecasts call for 16 million units next year, according to CMO.
50% of Samsung's LCD TVs and monitoring equipment flat panels are sold abroad. Except for its S-LCD-TFT screens, most of Samsung's products are procured in Taiwan, with CMO, AUO, and Chunghwa Picture Tubes serving as the main suppliers.
This year Samsung's procurement in Taiwan will total
NTD 3.2 billion, a 60% increase over last year, and the company further expects this amount to increase to
NTD 4 billion next year.
(Economic Daily News)
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