2 rivals join in joint venture

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2 rivals join in joint venture

Samsung Electronics of Korea and Sony of Japan have signed a joint venture contract to manufacture thin film transistor-liquid crystal display screens, Samsung Electronics announced yesterday. The joint venture, called S-LCD, will produce large TFT-LCD screens for televisions using a so-called “seventh-generation” process that can make eight 40-inch display screens from one manufactured panel. The two companies said they would invest 2.1 trillion won ($1.8 billion) in a new LCD display panel plant, split 50-50. The factory is to be built in Tangjeong, South Chungcheong province, and is expected to be operational in the second quarter of 2005. Samsung will own 50 percent plus one share and Sony the rest, the two firms said. A Samsung Electronics official will be the chief executive of the new company; Sony will name the chief financial officer. Samsung said no board members or executives have been named yet. The two companies began negotiating the details of the joint venture last year. Samsung said the venture would allow it a bigger role in standards-setting for LCD television, and Sony would get a stable supplier for the screens it needs for its televisions. According to DisplaySearch, a flat display market research company, the LCD television market will grow to 9.9 million units this year, up from 5 million units last year. The market is expected to expand dramatically, to 49.9 million units by 2008. by Lee Hyun-sang
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