Samsung Begins Mass Production at Second 7G LCD Line

Samsung Electronics Co., Ltd., the world’s largest provider of thin film transistor liquid crystal display (TFT -LCD) panels, announced that it will begin mass production at Line 7-2, its second 7 th Generation (7G) TFT-LCD line, today. Mass production begins only two months after the company successfully concluded pilot production of a 40” S-PVA panel last November.

A total KRW 4.132 trillion will be invested in Line 7-2 for the production of panels for LCD TVs of 32” or larger when it is fully-operational. The investment is divided in 2 phases and the company invested KRW 2.368 trillion in phase one to reach a monthly production capacity of 45,000 substrates. An additional KRW 1.764 trillion will be invested in phase two to add another 45,000 substrates to capacity for a full-scale production capacity of 90,000 substrates per month. The phase two investment is expected to conclude during the second half of 2006.

Currently, Samsung is operating another 7G line through its joint venture with Sony, called S-LCD (Line 7-1). Production commenced at Line 7-1 in April 2005 and full capacity of 60,000 substrates per month was reached in October 2005. In November 2005, the company announced that it will increase capacity at Line 7-1 by 15,000 substrates by July 2006.

Samsung will produce a combined 165,000 substrates per month or 1.32 million 40” panels per month at its 7G lines when Line 7-2 reaches full capacity.

Mass production at Line 7-2 is deemed a major watershed for Samsung Electronics, giving the company an advantageous position in standardizing LCD TVs around 40” and 46”.

Meanwhile, Samsung Electronics was the first in the industry to pass the $10 billion mark in annual sales of LCDs in 2005. The company has maintained its lead in the global LCD market in terms of sales revenue since 2002, this includes accumulation of sales for the first 11 months of 2005.