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FCC demands digital television

USA FCC released new requirements for TV sets: by July 1 2004 50% of 36-inch and larger TVs must be equipped with digital encoders; 100% of them — by July 1 2005. At the same time all 13- to 36-inch TVs must be equipped with digital encoders by July 1 2007.

Observers believe this will result in 30 million digital TV per year ($75 billion) demand. Korea Economic Daily thinks this gives a nice chance for Samsung and LG, that actively develop their digital TV products.

Samsung, aimed at the first place in the digital TV market, plans to spend about $300 million for marketing, but, perhaps, due to FCC decision this will become more than enough. By the year-end Samsung also plans to present new 40-inch digital LCD TV.

LG also tries to keep up and plans to spend about $200 million for marketing campaign that will continue until 2006. In the rather near future the company plans to present 50-inch PDP TV and 60-inch projector TV. Additionally, LG invests $90 million into a fab in Mexico to increase the amount of production lines from 3 to 12. Its yield is expected to make 3 million TVs per year, and the close location to USA makes us think all the TVs will be sold there.

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