Samsung, Sony jump together in the LCD market

Samsung Electronics Co. and Sony Corp. created a new market by overcoming cultural barriers in their joint liquid crystal display venture. To celebrate a major milestone in the construction of the eighth-generation LCD line, a topping out ceremony was held on Thursday at the Tangjeong production complex by the two companies’ joint project, S-LCD Corporation.

"We laid the groundwork for a leap forward with the success of our seventh-generation line and we will take that leap forward by leading the 50-inch level LCD TV market with the success of our eighth-generation line," Samsung vice chairman Chang Won-kie said. "S-LCD will evolve into a global success story that encompasses both Korea and Japan."

The new eighth-generation line would focus on boosting efficiency by using bigger glass panels, enabling makers to produce more LCD panels.

A barrier existed between the two companies as Sony's Japanese dedication to detail stood up against Samsung's Korean-style emphasis on speed, Lee, president and chief executive of Samsung's LCD business, told reporters.

"So at first it worked as a cultural barrier between the two companies or two countries but now it is becoming a synergy," he said. "They are very detail oriented and we are very speedy at working."

Samsung Electronics is expecting the global LCD market to be difficult in the first half of 2007 but for the second half they have predicted strong growth in demand and even a possible shortage. The company also anticipated the market to grow 53 percent to 73 million units in 2007 from this year.

S-LCD, set up in 2004, currently has the capacity to make 75,000 panels a month and by early next year it should reach the capacity of 90,000 units a month.

Samsung is aiming to have the latest production line of its S-LCD joint venture with Sony begin operations ahead of its scheduled start date of October 2007, two to three months in advance. "Our eighth generation line could be opened earlier than scheduled, and could contribute to the Christmas shopping season," Mr. Lee said.

Global demand for flat screen televisions has seen a rise as consumers dump their bulky cathode ray tube sets for the thinner, sleeker versions. To ensure stable supply of LCD panels, two major companies have joined hands although their other products compete against each other in global markets.