Samsung and Sony signed a Letter Of Intent (LOI) on manufacturing 8th generation amorphous TFT LCD panels at their joint venture, S-LCD Corporation.

The two companies plan to sign a definitive agreement by the end of June, 2006.

At S-LCD Corporation, located in Tangjeong, ChungCheongNam-Do, Korea, the 7th generation amorphous TFT LCD panels are currently manufacturing. Samsung and Sony plan to establish an 8th generation amorphous TFT LCD panel production line (glass panel size: approximately 2,200mm×2,500mm) at S-LCD.

Approximately $2 Billion will be invested in the 8th generation amorphous TFT LCD panel facility and actual production is targeted to start in fall 2007. The planned production capacity will be 50,000 panels per month.

By launching this production line, Samsung will target further business expansion in the LCD panel market for LCD TVs and Sony will continue to focus on cost-competitive and high-quality large screen products targeting an expansion of its LCD TV business.