South Korea's Samsung Electronics Co. , LTD and Japan's Sony Corporation on Monday signed a Letter Of Intent (LOI) on manufacturing an upgraded version of amorphous TFT LCD (liquid crystal display) panels at their joint venture.

The two companies are to sign a definitive agreement by the end of this June on establishing the 8th generation amorphous TFT LCD panel production line at S-LCD Corporation, the joint venture of the two companies.

S-LCD, which is located in Tangjeong, some 70 kilometers south to Seoul, is currently manufacturing 7th generation amorphous TFT LCD panels, according to a news release of Samsung Electronics.

"We plan to invest approximately 2 billion U.S. dollars in the 8th generation amorphous TFT LCD panel facility and actual production is targeted to start in fall 2007," the release said

Samsung Electronic also said the two companies made the decision to jointly produce the new generation of LCDs for the demand for LCD TVs is expanding in the world market.

"By launching a production line for the 8th generation amorphous TFT LCD panels, Samsung will target further business expansion in the LCD panel market for LCD TVs and Sony will continue to proactively focus on cost-competitive and high-quality large screen products targeting an expansion of its LCD TV business," said the release.

Source: Xinhua