Samsung a leader in LCD TV production is set cut its invest in LCD TV due to lower profibility than it forcast.

Samsung Electronics, the world’s second-largest maker of liquid crystal displays, may curtail its LCD investment in the face of lower profitability and intensifying competition, the UK-based Financial Times has reported. ‘LCD is a very difficult business and it requires a large amount of investment…If LCDs become just a commodity, we will be prepared to make adjustments in this business,’ Yun Jong-Yong, chief executive of Samsung Electronics, was quoted as saying in an interview with the newspaper.

‘Compared with last year, we will not do as well. Profit may decrease by 10-20 pct. That has a lot to do with the market situation, including increased material and oil prices, and the exchange rate,’ Yun said.  The newspaper reported that Samsung and local rival LG Philips, the world’s largest maker of LCDs, have been battered since flat-screen prices began falling more than a year ago. Both have continued to spend billions of dollars on increasing their production capacity in the expectation that demand will pick up as the televisions and monitors become more affordable.