Sony and Samsung Collaborate On New LCD Factory
Infoworld reports that Sony and Samsung will team up to build the world's most advanced liquid crystal display panel factory. The two companies will invest $1.9 billion (USD) on machinery and equipment for the new LCD panel factory and Samsung will spend an additional 940 million to construct the building. The new factory will be located next to an existing plant in Tangjeong, South Korea. Both plants will be operated by Sony and Samsung's LCD manufacturing joint venture, S-LCD Corp. Sony and Samsung will divide the output of the plant equally and use the panels in their own products. The plant is currently slated to open in late 2007.
"Strong worldwide demand for LCD TVs is driving the companies to increase production. On Friday Samsung increased its prediction of global demand for LCD TVs for this year to 48 million units, up 4 million from its previous forecast. Samsung sold 1.2 million [m] LCD TVs in the second quarter of this year, four times what it sold in the same three-month period one year earlier.
Friday's deal cements a preliminary agreement reached between the two earlier this year."
Friday's deal cements a preliminary agreement reached between the two earlier this year."
