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Monday, February 28, 2005
Samsung invests $2.1 billion to meet growing LCD demand

Samsung Electronics Co. Ltd. will invest 2.08 trillion won (US$2.06 billion) on a second LCD production line to help it keep pace with growing demand for LCD televisions, the company said Friday.

The money will be used to construct a clean room -- a dust-free environment in which electronic components can be produced -- and to buy equipment for the production line. Located at Samsung's Tanjeong factory in South Korea, the line will begin operation in the first half of 2006 with a monthly capacity of 45,000 panels, the company said.

The first line is due to begin production during the first half of 2005 and will eventually produce 60,000 panels per month at full capacity. The first line was constructed as part of S-LCD Corp., a joint venture between Samsung and Sony Corp. that was set up last April.

Both of the production lines will be so-called seventh-generation lines and will handle mother glass -- the glass from which displays are made -- up to 187 centimeters by 220 centimeters. This means Samsung will be able to cut up to 12 panels measuring 32 inches across the diagonal from one sheet, for example, or 6 panels that are 46 inches across the diagonal, it said.

Cutting a greater number of screens from a larger piece of glass helps to lower production costs.

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