Samsung and Sony are to form a subsidiary specifically for the production of LCDs, and they're calling it "S-LCD." It was originally announced last year, but they're being more specific about it now.

Samsung Electronics of Korea and Sony announced o­n the 8th that they plan for establishment of "S-LCD Corporation," a LCD manufacturing subsidiary, by the end of April. They will manufacture screens aimed at big-screen TVs, and plan for a monthly production of about 60,000 units. Mass production is supposed to begin by 2nd quarter 2005.

The new company is jointly managed under the MOU (Memorandum of Understanding) issued by the two companies in October of 2003, and will focus o­n the production of amorphous TFT LCD screens. Presented this time was that they have come to a conclusion, and decided o­n the establishment in April. The new company will be headquartered in Korea's Donjon (sp?).

Also, it was announced at the same time that about $2,000,000,000 USD will be invested in 7th generation construction equipment, to reach this goal of 60,000 screens per month (7th generation - glass substrate size 1870x 2200mm), and construction will begin this summer. They also have an "Engineering Meeting" planned for strategies from both sides, so as to obtain this goal by 2nd quarter 2005.

The capital stock of the company will be 2.1 trillion won, with Samsung Electronics investing 50% + 1 stock, and Sony 50% - 1 stock. The representative CEO has not yet been decided, as Samsung Electronics is still investigating it. The CFO will be Nakazawa Hiroji from Sony, and 3 managers will each be chosen from Samsung Electronics and Sony.

Inspired by:
http://www.watch.impress.co.jp/av/docs/20040308/sldc.htm

News Release:
http://www.sony.co.jp/SonyInfo/News/Press/200403/04-0308A/