Samsung cuts China LCD JV stake

Samsung initially planned to take an 80 percent stake in the project.

Samsung Electronics Co said on Friday it would invest 541 billion won ($500.5 million) to set up a $3 billion flat-screen production joint venture in China,as it targets the fast-growing consumer electronics market.

The world’s largest maker of liquid crystal display (LCD) screens received Chinese approval for the plant construction in December along with LG Display ,which is planning a separate $4 billion eighth-generation plant in Guangzhou,Guangdong province.

Samsung plans to maintain a 60 percent stake in the project in Suzhou,Jiangsu province,with Suzhou Industrial Park keeping 30 percent and Chinese TV maker TCL Corp holding the remaining 10 percent.

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Samsung initially planned to take an 80 percent stake in the project but decided to raise its partners’ shares to bolster their strategic tie-up,it said in a filing to the Korea Exchange.

The South Korean company,which is in an intense competition with rival LG Electronics Inc and LG Display over 3D technology to take initiative in the burgeoning 3D TV market,also said it was considering a separate $230 million investment to buy a 15 percent stake in Chinese flat-screen panel firm CSOT,partly owned by TCL.

China’s LCD TV market is expected to grow to 45 million units this year and to 57.8 million by 2014,according to research firm DisplaySearch.

Its 3D TV market is estimated to grow to 2.3 million units in 2010 and to 13.9 million by 2014.