China: development of LCD manufacturing facilities

South Korean tech companies Samsung and LG are working to adjust to growing global LCD demand and, in order to find cheaper facilities, have decided to develop LCD manufacturing plants in China.
“The…

South Korean tech companies Samsung and LG are working to adjust to growing global LCD demand and, in order to find cheaper facilities, have decided to develop LCD manufacturing plants in China. “The government has approved exporting those core LCD technologies to China, considering the need to manage the fast-growing Chinese market locally and economic cooperation between South Korea and China,” the prime minister“s office announced in a statement. Many tech companies rely on China for cheap labour, custom tax exemptions, and large manufacturing facilities. The US, Canada, England, and numerous other countries call upon Chinese-made products sold to consumers. Samsung“s Chinese plant, which will have a monthly production of 60,000 glass substrates, is expected to open in 2012. LG“s facility, which is scheduled to open during Q1 or Q2 of 2010, is expected to manufacture up to 120,000 glass substrates per month. In exchange for the facilities in China, either the companies or the Chinese government will pay South Korea a portion of the revenue generated by the manufacturing plants. AU Optronics is just one of the tech companies based in Taiwan that has requested its government to adjust investment agreements and ease legislation so they have the ability to more easily move factories outside the country.