LG to order US$1.5 B. from Taiwanese suppliers this year
LG, a globally leading brand of consumer electronics, plans to order US$1.5 billion of products from Taiwanese suppliers this year, with US$1 billion of display panels and the remaining on mobile phones, LCD (liquid crystal display) monitors, LCD TVs and related parts, according the LG Taiwan.
LG Taiwan indicated that LG is going to purchase display panels valued US$500 million with AU Optronics Corp. and Chi Mei Optoelectronics Corp. each, LCD TV and monitors with Ya Hsin Industrial Co. and TPV Technology Ltd., and mobile phones with Arima Communications Corp.
LG sold US$300 million of own branded products in Taiwan and also purchased US$1.5 billion from Taiwanese suppliers last year. Despite the global economic downturn, LG Taiwan stressed, the brand will maintain its outsourcing amount with Taiwanese suppliers this year.
To boost its global sales of mobile phones, LG will also increasingly outsource production with more Taiwanese suppliers, in addition to existing Arima. After selling 600,000 mobile phones in Taiwan, the brand hopes to push up the figure to 900,000, for a 50% yearly increase, with a 10% share as the No. 3 brand in the market this year, according to LG Taiwan. Plus, the brand will also concentrate on promotion of washers, fridges and LCD TVs in the market in the year.
