Establishment of A Joint Company for Amorphous TFT LCD Product Production

(Auszug aus der Pressemitteilung)

Seoul, Korea / Tokyo, Japan, March 08, 2004 – Samsung Electronics Co., LTD

(hereafter “Samsung”) and Sony Corporation (hereafter “Sony”) have signed a
contract to establish a joint company, named S-LCD Corporation, for the
production of amorphous TFT LCD products, the new company to be established
by end of April, 2004.

After the signing of a MOU (Memorandum Of Understanding) last year in
October, Samsung and Sony have thoroughly discussed the joint venture
establishment, leading to the present signing of the contract for its
The new company will be established from an equal joint investment by the 2
companies and the 7th generation amorphous TFT LCD panel production line
will be established in Samsung’s facility in ChungCheongNam-Do (Tangjeong),
which is now under construction. Large screen size LCD-TV will mainly be
President and CEO for the newly established Company will be assigned from
Samsung and Representative Executive and CFO assigned from Sony. Equal and
collaborative operation will executed, targeting efficient LCD display panel
production necessary for each of the Companies. For the introduction of this
7th generation production, approximately $2 Billion is necessary for the
equipment investment, and this investment will start from Summer/2004 in the
facility of ChungCheongNam-Do. The actual mass production of the amorphous
TFT LCD product is targeted to start in the 2nd quarter of 2005.
Also, both parties will cooperate to evaluate the quality of the amorphous
TFT LCD products, by holding a so called ‘Engineering Meeting’, between
Samsung and Sony.
By establishing a stabilized production facility for amorphous TFT LCD
display products, both Samsung and Sony will continue to proactively focus
on such product development, targeting the LCD TV market which is expected
to grow dramatically from now onwards.

Outline of Join Venture
(planned to be established by the end of April, 2004)

  • Company Name : S-LCD Corporation
  • Capital : Krw 2.1 Trillion*
    (*Samsung Electronics : 50% plus 1 share, Sony : 50% minus 1 share)

  • Representatives:
    High level executive, President and CEO (from Samsung) Keiji Nakazawa, Representative Executive and CFO (from Sony)

  • In addition 3 members from each company, will be named Representative Board Members.
  • Location : Tangjeong, ChungCheongNam-Do, Korea
  • Production Item : Amorphous TFT LCD Product (mainly for large size CTV)
  • Production Capabilities : 60,000 panels/month, the 7th generation (1,870mm×2,200mm)