Since launching its new display arm, Samsung is gearing up to make a generation shift in display panels at its Chinese plant in Suzhou, Jiang province, so that it can make larger display panels and possibly organic light-emitting diode displays.

Chang Won-kie, president of Samsung China, told reporters Wednesday that the Chinese government has approved the firm’s request to shift its liquid-crystal display manufacturing line from 7.5-generation to 8-generation, hinting that it will soon show “outcomes.”

“I can’t be specific but I believe (the 8-generation) manufacturing line will be constructed by the end of next year,” he said.

The shift to 8-generation enables the electronics giant to produce larger displays such as 47-inch and 55-inch television panels. The 7-generation makes TV display panels that are 42 and 47 inches.

Last October, Samsung asked the Ministry of Knowledge Economy and the Chinese government to approve its plan to change the generation of the LCD manufacturing line. The Korean government immediately gave the green light, but the Chinese government deferred the decision for about six months.

Samsung initially pledged to invest $3 billion and broke ground for a 7.5-generation LCD plant in China in May last year with plans to make it ready for mass production by 2013.

The firm, however, revised its plan following a delay in construction, concluding that it was more efficient to aim for the 8-generation.

The 8-generation manufacturing lines are used to develop panels for premium products such as the OLED display panels, which is why the generation shift is causing many to assume that Samsung will eventually turn away from LCD panels and focus on investing in OLED displays.

Its rival LG Display is also currently investing in the 8-generation for the OLED display panels.

In a related effort, Samsung is likely to relocate its 8-generation LCD equipment to the plant in Suzhou from Tangjeong, South Chungcheong Province.

By Cho Ji-hyun (sharon@heraldcorp.com)