The liquid crystal display (LCD) industry is unlikely to suffer oversupply in 2010, the chief executive of LG Display Co Ltd (034220.KS) said, as strong demand from China and new products brighten the sector's outlook.

LG Display, the world's second-biggest maker of LCD screens behind Samsung Electronics Co Ltd (005930.KS), reported a weaker-than-expected quarterly operating profit on Wednesday but issued a strong outlook for the first quarter. [ID:nTOE60I01A]

Its shares were up 1.37 percent at 40,600 won as of 0009 GMT, compared with the broader market's 0.86 percent fall.

The LCD industry is benefiting from robust Chinese demand for flat-screen TVs ahead of the Lunar New Year and Labour Day holidays and the improving global economy, defying the usual first-half seasonal weakness.

"We had initially worried about the first quarter but it turns out we are having a shortage," CEO Kwon Young-soo told reporters.

"At this rate, chances are small for an oversupply this year. 3D TV can attract lots of interest and increase demand."

Kwon's comments, made at a news conference late on Wednesday, were embargoed until Thursday.

Kwon expected tablet PCs to create a large new market after netbook computers and touchscreens have become popular.

UBS said on Wednesday LG Display would likely supply displays for Apple's (AAPL.O) eagerly awaited tablet computer. [ID:nLDE60J17F] Kwon declined to comment on the matter.

Kwon said he was confident of securing Chinese authorities' approval for plans to build a $4 billion panel-making plant in China, LG Display is reviewing several Chinese TV makers to pick a partner for the plant, to be located in Guangzhou.

Kwon also said LG Display would turn emerging technologies such as organic light-emitting diode (OLED) displays, e-paper and solar into new growth businesses this year.

OLED technology, which creates thinner, higher-quality and more energy efficient screens than LCD panels, is slowly making inroads into smartphones and is expected to be adopted in TVs once prices come down.

Kwon said LG Display is set to start volume production of OLED panels after the second quarter this year and plans to produce 30-inch OLED screens for TVs as early as in 2011.

The company is holding talks with several foreign newspapers on the possible supply of e-paper, he said, without elaborating.

source:reuters