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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
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)
Further details to be decided upon discussion.