The following information is true and accurate at the time of publication.
October 28, 2003
Samsung Electronics and Sony Signed a MOU to Establish Joint Venture
for the 7th Generation Amorphous TFT LCD Panel Production
Samsung Electronics Co., Ltd
Sony Corporation
Seoul, Korea / Tokyo, Japan, October 28, 2003 - Samsung
Electronics Co., Ltd (hereafter "Samsung") and Sony Corporation
(hereafter "Sony") have signed a MOU (Memorandum Of Understanding)
with the intention to establish a joint venture for the
manufacture of the 7th generation amorphous TFT LCD panel.
The joint venture is due to be established in the 1st quarter
of CY2004, subject to completion of a definitive agreement
and applicable regulatory requirement.
The joint venture will be invested by two companies and
it will install the 7th generation (1,870mm x 2,200mm substrates)
amorphous TFT LCD panel production equipments in the facility
constructed by Samsung in Tangjeong, ChungCheongNam-Do,
Korea. The production line is targeted to reach a production
capacity of tens of thousands sheets monthly (substrate
base) by summer 2005 requiring a capital investment of approximately
$2 billion. These and other details are subject to further
discussion and agreement between the two companies.
The popularity of flat display TV sets continues to advance
rapidly and consequently the demand for TFT LCD panels has
also increased dramatically. The demand for LCD TV sets
is expected to be 14 million units worldwide in FY2005 which
is estimated to be as over 10 percent of total TV set sales
world wide.
This investment in the 7th generation production line will
enable both companies to ensure stable production with efficient
cost performance allowing them to supply their products
to LCD market. The world's largest the 7th generation amorphous
TFT LCD manufacturing line will ensure all stakeholders
of the industry what the standard glass size will be, and
also enable Samsung to reinforce its leadership in the fast
growing LCD market with Samsung's various differentiated
technologies. By adding the production capacity of this
new company to its existing suppliers, Sony will be able
to secure a stable amorphous TFT LCD panel supply for its
own TV sets in order to promote product development and
meet the expanding world demand.
Joint Venture (details still under discussion and to be finalized in the 1st quarter of CY2004)
| Name of the
company: |
To be decided |
| Capital: |
Approx.$2
billion |
| Representatives: |
To be decided
(planned to select CEO from Samsung, CFO from Sony) |
| Location: |
Tangjeong,
ChungCheongNam-Do, Korea |
| Product: |
Amorphous
TFT LCD panels |
| Capital Invested: |
Approx. $2
billion (amount to start mass production) |
| Production
capacity: |
Tens of thousands
sheets per month *the 7th generation(1,870mm x 2,200mm) |
Further details to be decided upon discussion.
|
