LG Display, the world's No.2 maker of liquid crystal display screens has enjoyed a strong demand for flat-screen TV’s. This because of the Chinese holidays and sports events such as the World Cup.
However, concerns have grown recently that the sector might return to oversupply as makers ramp up output.
The CEO of LG display, Kwon Young-soo said that the company is not concerned about oversupplying and the market will not crash, because despite increasing capacity, panel makers are struggling to meet demand for high-end products such as LED-backlit LCD and large-sized screens.
The demand in more advanced panels will grow and that’s why LG is setting a new production line in the first half. The company is awaiting approval from China on a proposed $4 billion LCD plant to increase capacity in South Korea.
Kwon Young-soo says that the demand is strong and the company is meeting only 80 percent of their customer demand. So it is wise to add new capacity.
The CEO also says that the prices of some products including TV and IT may actually rise due to supply shortages.
These affairs have a good influence on the stock exchange. The shares in LG Display rose 2.3 percent.
Bram Verstraete
Source: http://www.cnbc.com/id/35829509
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