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Several companies based in South Korea and Taiwan plan to open up manufacturing facilities in China

South Korean tech companies Samsung and LG have been granted permission to develop LCD manufacturing plants in China. The companies are working to adjust to growing global LCD demand and they must find cheaper facilities, even if that means building additional plants outside of South Korea. 

"The government has approved exporting those core LCD technologies to China, considering the need to manage the fast-growing Chinese market locally and economic cooperation between South Korea and China," the prime minister's office announced in a statement.

Many tech companies rely on China for cheap labor, custom tax exemptions, and large manufacturing facilities.  The United States, Canada, England, and numerous other countries call upon Chinese-made products sold to consumers, but several companies have been criticized -- and sometimes punished -- by host governments.  South Korean and Japanese companies, for example, often undergo strong public scrutiny when they attempt to offshore manufacturing processes.

The Samsung Chinese plant is expected to open in 2012, and will manufacture 60,000 glass substrates per month.  LG's facility is expected to manufacture up to 120,000 glass substrates per month once the plant opens during Q1 or Q2 next year.

In exchange, either the companies or the Chinese government will pay South Korea a portion of the revenue generated by the tech companies' manufacturing plants in China.

AU Optronics, an LCD company based in Taiwan, also is pleading with its government to adjust its cross-straight investment agreement with China so it can build LCD plants outside of Taiwan.  A growing number of tech companies based in Taiwan have asked the country's Economic Minister to ease legislation so they have the ability to more easily move factories outside the country.



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By inperfectdarkness on 12/30/2009 8:45:07 AM , Rating: 3
the implications are huge. key suppliers of electronic components are no longer manufacturing those components in countries allied with us.

that's why i shudder to think if there were ever another global, non-nuclear war. america simply does NOT have the manufacturing base to pull off another WWII.




RE: while this doesn't sound like a big deal....
By Machinegear on 12/30/2009 9:04:34 AM , Rating: 2
The US is faltering in a relatively peaceful time. It appears the ability to wage, and win, another World War is completely beyond the pale for the US at this point.

Navy SEALs put on trial:
http://www.foxnews.com/story/0,2933,579744,00.html

US debt out into the stratosphere:
http://www.usdebtclock.org/

Government (on behalf of the Tax Payers) bailing out bad banks, buying failed car companies, looking to give "free" health care, etc...............

The good news out of this story is until that terrible day, if it comes, we get cheaper LCD's. :)


By Kurz on 12/30/2009 10:19:04 AM , Rating: 2
Those LCD's Better not be TN or we (USA) should Wage war.

That huge debt we racked up to prevent the so called crisis.
Well at least we didn't go in another depression.
Wink Wink

I can see the whole economy falling when other countries finally stop caring about the dollar. When that happens I hope you have something of value IE physical value something you can touch, because the fall will be hard and fast.

If you didn't think I was being sarcastic with the first line I lose faith in humanity being able to read and comprehend.


By WoWCow on 12/30/2009 1:48:27 PM , Rating: 2
quote:
In exchange, either the companies or the Chinese government will pay South Korea a portion of the revenue generated by the tech companies' manufacturing plants in China.


Damn, I guess getting the kickbacks can officially be legal now.


not new
By rudy on 12/30/2009 9:23:23 AM , Rating: 2
There is nothing new here for the US our manufacturing base has been bleeding out for decades. Remember the 80s everyone hated the japanese, then it was tiawan, and south korea each of these countries became a developed nation because more developed nations out sourced and built up their infrastructure. Eventually wages would rise and they too would need to out source. What I like to say is the US lost it all at least 30 years ago so what we don't care if we get it from Japan, China, or Africa. We will always find a new place to get cheap labor the pain will be more real in countries who feel they just finally became developed and are already looking at the pains of out sourcing.




RE: not new
By Uncle on 12/31/2009 6:54:28 PM , Rating: 2
What comes around goes around. I predict that 50 years from now the rest of the world will be beating a path to the US of A for cheap labor and out sourcing here after a deep Depression . You just wait some East Indian is going to poke fun at an American for trying to talk with an East Indian accent and when asked he'll say he is Burhinder Baliwal.


"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il

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