LCD market "has hit bottom"

 

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By Reuters

Posted on 20 Jan 2009 at 11:00

The liquid crystal display (LCD) industry has "hit the bottom" and could be on the verge of a turnaround, according to the head of LG Display.

LG Display recently reported its worst-ever quarterly loss, hit by $400 million worth of US price-fixing fines and falling screen prices.

LCD makers are likely to suffer further losses in the first half of 2009 as consumer demand for electronics declines rapidly on the deepening global downturn, according to analysts.

However, LG Display's chief executive Kwon Young-soo Kwon is confident prices will recover soon.

"The good news is that we've reached a bottom," he told reporters at a news conference late on Friday, adding that the recovery would likely be led by high-end mobile displays for smartphones and mobiles phones.

To that end, LG Display says it will invest $427 million in a new production line designed to produce premium LCD screens for mobile devices.

The new line, which uses LTPS (low temperature polysilicon) technology that produces higher-quality pictures, will help the company secure its foothold in the growing market, says Kwon.