Samsung begins investment in new LCD plant

Samsung Electronics is planning to begin construction of a Line 7-2 at its fabrication facility in Tanjeong, Korea. Samsung will make a US$273 million investment in order to start off the construction of the building for the new line. Line 7-2 will be located to the west of Samsung's Line 7-1. The plant will be about 300,000 square meters while the module assembly facility will be about 93,000 square meters. Line 7-1, the joint venture between Samsung Electronics and Sony Corporation, is the world's first 7th Generation line and production is scheduled to begin in the first half of 2005.

Following market acceptance of 32-inch LCD panels, Samsung is planning to take the lead in standardizing 40-inch and 46-inch LCD TV panels with this early capital investment. The company says the construction of Line 7-2 is in response to the rapid growth in demand for 30-inch and larger LCD TVs and production is scheduled to begin in the first half of 2006.

"With Line 7-2, Samsung will secure a stable supply from which we can deliver high-quality, affordable LCD TV panels," said Sang Wan Lee, president and CEO of Samsung's LCD Business. "This will solidify Samsung's leadership position in the industry as it standardizes large-sized LCD TVs."