LG Cuts Back LCD Production As TV Market Cools

LG Display, the world’s second- largest maker of liquid-crystal displays, says it plans to reduce its LCD output by about 10 per cent from full capacity by the end of August because of “uncertainty” in the market, according to a report in bloomberg.

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And LG is not the only one feeling the pinch as AU Optronics, the world’s third-largest LCD maker, said it will also shut some production lines because of lower-than-expected demand for displays, which was shown by its 17 per cent drop in sales in the June quarter.

Over the past 12 months, LG Display shares have fallen some 37 per cent as fears of falling prices, a weak global economy and panel oversupply make investors more jittery than usual.