Philips buys stake in LG LCD

Summary:Electronics giant Philips has bought its way into the lucrative LCD flat panel market following a $1.6bn (£0.98bn) purchase for a 50 per cent stake of LG Electronics' Active Matrix Liquid Display (AMLCD) business.

The joint Philips-LG venture, which will, for the moment, retain its name of LG LCD, is expected to officially start business in August and will focus on developing a greater variety of sized LCD panels for the desktop, notebook and embedded markets.

Philips claimed that that the AMLCD flat panel display market had revenues of approximately $8bn in 1998, and expects it to grow annually by more than 20 percent. LG's existing share of this market amounts to sales of around $500m with the company estimating that this will rise to $1.8bn this year.

In a prepared statement, Cor Boonstra, president and CEO of Royal Philips Electronics, hinted that Philips and LG will in the future have a "true" joint venture, where both companies will completely combine their LCD operations.

Topics: Tech Industry

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.