Philips takes 50 per cent slice of LG's LCD biz
Gets Dutch company out of a CRT hole
As predicted here at the weekend, Philips has taken a cut in LG's liquid crystal display business. The Dutch company yesterday confirmed it had signed a letter of intent to take 50 per cent of Lucky Goldstar's TFT screen business, and is paying $1.6 billion for the privilege. While LG already has a fair chunk of market share in the burgeoning flat planel screen business, Philips will bring its R&D expertise to the deal. Products will start to roll off the fab lines in time for the third quarter buying spree, the Dutch company said. There were rumours last year that Philips was considering exiting the monitor business but the LG deal spanners that speculation. Paying $1.6 billion will allow Philips to jump straight into the potentially lucrative LCD market, as CRT sales start to decline. ®
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