Philips Electronics NV has completed its $1.6bn acquisition of a 50% interest in South Korea’s LG LCD, the active matrix liquid crystal display (AMLCD) business of the LG Electronics Co Ltd. The investment, announced in May (CI No 3,663), is the largest-ever foreign investment in South Korea and the biggest single investment by Philips.
Philips claims the deal puts it into an immediately profitable and leading position in the AMLCD industry. It quotes research showing the flat panel display market was worth $8bn last year and is growing by 20% a year, driven by demand for notebook computers and emerging TV applications.
While Philips’ investment will strengthen LG, the agreement also gives LG LCD access to Philips’ global distribution network. Philips says the new company has the potential to develop into a full joint venture incorporating all AMLCD activities of both companies.
