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November 2, 2006

S-LCD Prepares for New Growth Surge from 8th-generation LCD Fabrication Line

TANGJEONG, South Korea, November 2, 2006 - S-LCD Corporation (hereafter S-LCD), a Samsung Electronics Co. Ltd. (hereafter Samsung) - Sony Corporation (hereafter Sony) joint venture, held a “topping out” ceremony to celebrate a major milestone of the construction of the 8th-generation LCD fabrication line at the Tanjeong production complex. “Topping out” is the placement of the uppermost steel beam, signifying that the structure is close to its completion. At the ceremony, officials of S-LCD said the new facility would trigger a “new growth surge” for the company.

The following senior executives participated in the ceremony:

  • From Samsung Electronics:
    Vice Chairman Jong Yong Yun,
    Vice Chairman Yoon Woo Lee,
    President Sang Wan Lee
  • From Sony Corporation:
    President and Electronics CEO Ryoji Chubachi
    Executive Deputy President Katsumi Ihara
    Executive Deputy President Yutaka Nakagawa
  • From S-LCD:
    CEO Won-kie Chang
    CFO Hitomi Masatoshi

The six senior executives of Samsung and Sony congratulated one another on the success of their previous collaboration - the 7th-generation LCD line - and promised to work together to ensure continued success with the 8G line.

S-LCD started mass producing LCD panels on the 7G line in April 2005, one year after the company was officially launched. As a result of that collaboration, both Samsung and Sony have had access to a stable supply of large-screen LCD TV panels, helping the partners to become the global market leaders for LCD TV screens in the 40”-diagonal range.

S-LCD has maintained its original investment schedule on its path to market leadership for LCD TV screens in the 50”-diagonal range.

In July this year, the 7G fabrication line at S-LCD will be capable of processing 75,000 mother-glass substrates (1,870mm × 2,200mm) per month, with a goal of increasing this monthly capacity to 90,000 units in early 2007.

Next fall, the 8G S-LCD line will commence operations, adding another 50,000 mother-glass substrates (measuring a record 2,200mm × 2,500mm) to the overall monthly production capacity, thereby positioning S-LCD as the world’s largest producer of large-screen LCD TV panels. The 8th-generation fabrication line will mainly be used to produce LCD panels for 52” or larger diagonal LCD TVs.

S-LCD CEO Won-kie Chang, who is also an Executive Vice President at Samsung, says: “Our success in 7G production has already provided a springboard for a new round of growth at S-LCD. Once our 8G line is up and running, we will assume the leading position as a LCD TV panel manufacturer for the 50” LCD TV range.”

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