Meanwhile, to cool investment in the LCD panel industry and to prevent overcapacity, the Ministry of Industry and Information Technology may issue guidance about the LCD panel sector. Approval for LCD panel programs, especially generation 6 and above LCD production lines, will be tightened up.

Investment in LCD panel field is heating up in China. At the end of August, Beijing-based BOE, the biggest LCD panel maker on the Chinese mainland, established an 8th generation line in Beijing. The official agreement of LG Display's 8.5th generation line to be established in Guangzhou was signed. TCL's 8.5th generation LCD program also started in November. In addition, Longfei (Kunshan) Optoelectronics Co. Ltd.'s 8.5th generation line and an 8th generation line funded by CET and Sharp Corporation are planned.

After put into operation, LG Guangzhou will have an capacity of 60,000 LCD panels per month, while capacity of lines of BOE, Sharp and Longfei Optoelectronics will reach 90,000, 80,000 and 80,000 per month respectively. These programs will be finished around 2011 and 2012, leading to a boom in LCD panel capacity.