Cross purchase deal for lcd giants
Korean manufacturers Samsung Electronics and LG Electronics have signed an agreement to cross purchase lcd panels for computer monitors.
The deal will result in Samsung purchasing 17in lcd panels from LG, while LG will purchase 22in lcd panels from Samsung. This equates to each company buying over 40,000 lcd panes from one another from next month.
This is the first time Korean companies have formed an alliance in the lcd market and the move has been actively encouraged by the Korean government. According to the Korea Institute for Industrial Economics and Trade, Samsung holds the largest global market share at 25.7%, with LG on 20.3%. The combined share would be 46%.
