Samsung is investing $275M to increase LCD production capacity

Samsung is going to increase its 7th generation LCD production line and will pay with its own cash reserves. Samsung says that this will help them to meet demand for large size TVs and computer monitors.

While there is a slump in the LCD market in general, why would Samsung increase its capacity? It’s simple: making 14″ to 19″ LCD panels is not all that difficult nowadays, that’s where the slump is. Making LCD panels up to 42″ is another story.

Samsung is trying to go in a place where the competition can’t compete and where the margins are high (even Sony had to create a venture with Samsung to produce the next generation LCD panels). That’s the very high-end market. Samsung’s technical excellence pays again.

[press release]