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Samsung, Sony Sign Final Contract
Jul 17, 2006
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Samsung Electronics Co., Ltd. and Sony Corporation signed the final contract for constructing an 8th generation amorphous TFT-LCD panel manufacturing line at their joint venture, S-LCD Corporation.

The following issues have been discussed between the two companies since the agreement on the Letter of Intent, which was released in April 2006, and have reached the final contract stage.

The companies plans to establish an 8th generation amorphous TFT-LCD panel production line (glass substrate size: approximately 2,200 mm by 2,500 mm), along with the current 7th generation amorphous TFT-LCD panel production line. They also plan to invest approximately U.S. $1.9 billion, not including the ocst of the building and land, with each company providing half. Actual production is targeted to start in fall 2007 with a production capacity of 50,000 panels per month.

Together with the current 7th generation line, the start of the 8th generation line will enable both companies to expand production of large screen LCD panels for 50 inch class LCD TVs, of which demand is expected see a significant increase, as well as to acquire a stable supply to meet demands.

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