LG Display to Buy LCD Equipment from Samsung Affiliate

LG Display said Monday that it considering purchasing equipment to manufacture liquid crystal displays from Semes, an affiliate of Samsung Electronics.

Semes is Korea's largest producer in terms of sales of equipment for pre-processing semiconductors and manufacturing displays and is 63.87 percent owned by Samsung. The company developed the eighth-generation etcher/stripper and washer, which it supplies to S-LCD, a joint venture between Samsung and Sony.

LG Display's plan is unusual as semiconductor and LCD manufacturers are typically reluctant to do business with their rivals' suppliers out of concerns of a possible technology leak.

The purchase will not happen immediately as LG Display has already acquired nearly all the equipment it needs for its eighth LCD production line in Paju, Gyeonggi Province. The company plans to complete the expansion of the Paju plant by the second quarter of this year.

englishnews@chosun.com / Jan. 26, 2010 11:13 KST