Samsung Electronics has announced that it will invest over U.S$2 billion in the second TFT-LCD production line in Tanjeong, Korea. The funds will be used for the construction of the clean room and purchase of production equipment.
Like its Line 7-1, this second line will be fitted for substrates of 1870x2200 mm and is planned to begin operations in the first half of 2006. It will be dedicated to the production of 32-inch, 40-inch and 46-inch panels for TVs and the glass size can accommodate up to twelve 32-inch, eight 40-inch and six 46-inch LCD panels. Production capacity is set for 45 thousand substrates per month and the company may decide to further increase its investment depending upon the conditions of the LCD TV market.
This public announcement comes after revealing a KRW286.7 billion investment to construct the foundation of the second line last December and ahead of its plans to begin operations at its Line 7-1 next month
Currently the world LCD TV market is quickly growing because of the high demand for 32-inch LCD TVs. According to Display Search, LCD TVs of 28-inch and larger made up 31% of the market and this figure is expected to reach 45% this year and 60% by 2007.
In the case of Samsung Electronics, the demand for 32-inch products gradually rose from the second half of 2004, and a spark in demand increased the sales of these panels to 50 thousand per month from the end of 2004. Furthermore, Samsung is selling about 10 thousand 40-inch and above panels per month because of this rising demand in the LCD market.