Samsung  and LG Display Co. got their approvals for moving the production plants in China, where the costs are definitively lower. China is expected to become the largest manufacturer of large TV screen, reports the Wall Street Journal.

Although in the past China raised concerned about the quality control, now that the demand for LCD is expanding, the main manufacturer are considering main land China as an alternative for competitive prices. The same strategy was followed also by Samsung and LG’s rivals from Japan and Taiwan.

A year ago Samsung announced that the company will build a 7.5 generation LCD (screen up to 40inches) panel plant in China. The costs of the project raise up to $2.4 billion. On the other hand, the second largest LCD producer in the world, LG Display estimated that the cost of the 8.0 generation LCD (screen larger than 50inches) panel plant will round $4 billion.

Specialists review the re-location strategy as an enforcing way to maintain the 50% of the market share that both the Korean companies hold in present. Meantime, it is predicted that the saturation of the market will be reached shortly, in 2012 “Since three other local Chinese companies are also building LCD plants, which will likely start operation in the latter half of 2011 at the earliest, there’s a high possibility of an industry oversupply some time in 2012,” said Yoon Hyuk-jin, an analyst at Shinyoung Securities.

This is of course an important aspect of consumer elctronics at this point, between mobile devices and home entertainment.  One area that’s going to see a great deal of growth for manufacturing and networking is home business, with infrastructure and cloud computing becoming an incredibly influential factor for Samsung and LG moving forward.

China is an interesting solution for other manufacturers too such as Alcatel Lucent or Dell & HP.