Samsung Display and Corning Singapore have inked a memorandum of understanding with the government of Wuxi New District, China, to form a new equity venture for the production of TFT-LCD glass substrates in China.
Awaiting a final signed deal between Samsung Display and Corning, the new equity venture is anticipated to be established later in 2012, subject to acceptance of regulatory approvals. This new entity, an extension of a decade-long coalition between the two companies, will leverage Samsung Display’s expertise in LCD display and Corning’s LCD glass substrate technology. It will deliver LCD glass substrates to Samsung Suzhou LCD in China.
Samsung Display and Corning will allow the new entity to invest around $600 million to build a new LCD glass substrate plant in China. The new venture will invest in phases for the development. The new production facility will feature Gen 8 (2,200 x 2,500 mm) glass-melting and finishing capability. Construction is scheduled to be commenced by the end of this year, with manufacturing anticipated to be started at the end of 2013 to fulfill requirement for the start-up of Samsung Suzhou LCD.
Even though new LCD glass substrate facility is being constructed in China, Samsung Corning Precision Materials, an equity venture of Corning and Samsung, will idle some of its LCD glass substrate capacity in Korea. Corning Glass Technologies’ President, James P. Clappin informed that transferring part of LCD glass capacity in Korea to this new Chinese plant will allow the company to provide local supply for Samsung’s new panel-manufacturing operations in China.
Samsung Display’s Executive Vice President and Head of the company’s LCD Business, Donggun Park stated that the new LCD glass venture will facilitate Samsung Display to capture a major share in the Chinese LCD TV end market via its new Samsung Suzhou LCD company in China.
Source: http://www.corning.com