Aug. 27, 2009 (China Knowledge) - Samsung Electronics Co Ltd, the world's largest LCD panel manufacturer, may invest US$3.2 billion setting up an 8th-generation LCD panel plant in China, a source with knowledge of the deal said, the Korea Times reported on Thursday.

Samsung is evaluating two Chinese cities, Suzhou, Jiangsu Province and Shenzhen, Guangdong Province for the project and will sign a memorandum of understanding with one of the local governments.

The report also said that the new plant will be operational in the second half of 2011.

Samsung China could not be reached for comment.

Reuters earlier this week reported that Samsung Electronics expressed interest in setting up a 7th- or 8th-generation LCD panel plant in China, but no details had been decided.

LG Display Co, the world's second-biggest LCD panel maker, recently signed an agreement with the Guangzhou municipal government to set up an 8th-generation LCD panel plant in the city.

Official figures show that around 9.01 million LCD TVs were sold in China in the first half of this year, 64.7% more than in the same period of last year. About 22.6 million LCD TVs are expected to be sold in China this year, as more Chinese consumers are replacing the traditional CRT TVs with LCD TVs.