After an extensive period of deliberation LG.Philips LCD has decided to set the size of its eighth-generation (8G) LCD substrates at 2200×2500mm — the world’s largest. The size was selected to optimize production of 47- and 55-inch panels. According to our colleagues at DisplayBank an LPL representative said yesterday, “We expect that this decision will lead to intensified competition between us and Samsung Electronics in the 40-inch range market….”

Ken Werner
Senior Analyst and Editor
of HDTV Retailer

The new 8G line will be capable of producing 47-inch panels 8 at a time (”8-up”) or 55-inch panels 6-up. Sharp and Samsung have opted for 2160×2460 substrates. (Sharp will be the first to produce panels on an 8G line, ramping to mass production in 2H’06.)

Although that 40mm substrate difference on LPL’s line may not seem like much, it’s highly significant for efficient glass utilization when making certain panel sizes. If Samsung and LPL use their yet-to-be-built 8G lines to make 32-inch panels, LPL will be able to produce them 18-up, while Samsung will only be able to produce them 15-up. That’s a significant competitive advantage. The numbers are even more dramatic for 47-inch and 55-inch panels. LPL could make the 47-inchers 8-up and the 55-inchers 6-up, compared with only 6-up and 3-up for Samsung.

But this is the game with LPL writing the rules, and Samsung isn’t going to play it. Currently, Samsung makes 40- and 46-inch panels on its 7G line, while LPL makes 42- and 47-inch panels on its “7.5″ line. Both have been energetic in their attempts to “set the standard” for LCD sizes by convincing consumers to purchase panels in their preferred sizes. So far, neither company has dominated this battle.

Our take? Look for Samsung to produce 46- and 52-inch panels on its forthcoming 8G line, and to do so with its usual good glass utilization. Sharp’s situation is different. Since it currently produces large wide-screen TVs in 32-, 37-, 45-, and 65-inch sizes, the company has a huge hole in its line-up that would be neatly filled by a 52. And if Samsung can make 46-inchers 8-up on the “small 8G” substrate, Sharp could certainly do it with 45s, although with somewhat poorer glass utilization.

As far as industry standards are concerned, we’ll have a single standard only if consumers pick one. But this will come only after a lot of convincing from the winning team — if it comes at all.