LG 2001 Annual Report Download - page 21

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In the development of
digital TV, LGE is proud to
be the global leader.
In Plasma Display Panel
technology, we have
achieved the world’s top
yield ratio within the
shortest period of time.
Message from CTO
LG Electronics Inc. The
43
rd Annual Report
2001 Review
With the US economy slipping into recession after more than 10 years of growth,
global economic conditions in 2001 were adverse. Despite such conditions, LG Electronics
managed great technological achievements in digital TV, Plasma Display Panels (PDP), and
IMT2000 Systems by not giving into a trend towards reduced R&D investment. Digital
broadcasting finally took off at the end of the year and we are now ushering in a new era of
consumer electronics, led by PDP TV, LCD TV, DVD and DVD-ROM, wireless PDA,
personal video recorders and internet refrigerators. In these advanced technologies LG
Electronics is currently setting the global standard.
Digital TV
With this year’s World Cup and Olympic Winter Games, 2001 was an opportune time
for the introduction of new technologies and digital products. In the development of digital
TV, LGE is proud to be the global leader. In core technologies for digital TV, we have
created a 4th generation chip (VSB) which will be the standard technology used by all DTV
producers except for European type televisions. With a ten year extension of our patent
on this technology we will have an added edge in price competitiveness as well as high
royalty revenues. We have also developed an ASIC chip for enhanced display on digital
Ready TV, which we have applied to our major DTV brand X-Canvas. This has given us a
definite edge in picture quality. Another of our world-leading hardware technologies is the
HD Decoder Chip, developed for DTV set-top boxes.
Besides hardware, we have developed software for DASE-type broadcasting which has
been successfully tested by KBS, a Korean Public Television Station. We have also made
great progress in developing standard software for the Advanced Television Enhancement
Forum (ATVEF) together with PBS, the US public television station.
In product development, we have secured prominence with a variety of products,
including Digital Light Processing (DLP), Liquid Crystal Display (LCD) and Projection along
with a flat CRT TV and our famous Plasma Display Panel (PDP) TV. For High Definition
Service STB our DTV set-top box has received certification from DirecTV, the largest
Satellite broadcasting system in the United States.
2001 was a particularly busy year, as many of the industrys global players approached
us for strategic alliances in technology and product development.
PDP
In Plasma Display Panel technology LGE has focused on efficiency and low cost. As a
result, we have achieved the world’s top yield ratio within the shortest period of time. We
also produced the worlds thinnest PDP TV and are now drawing a significant portion of
the local market. Another success of 2001 was the extension of our product line from 40”
panels to 42”, 50” and even 60”, greatly expanding the market for home users.
OLED
After building a pilot line in 2000, we have been producing world class Organic Light-
Emitting Diode panels as well as OLED for car audio. We will continue to develop
products applicable to PDA technology, digital cameras and IMT2000 handsets.