Latest LG.Philips investment worth over $1 billion

LG.Philips, the joint venture between LG and Philips to manufacture TFT LCD screens, sees a funding injection to carry it further into fifth-generation production.

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By  Kate Concannon Published  June 24, 2002

Up against rising LCD technology giants such as Samsung, which recently announced its impressive 40” LCD TV achievement, Philips and LG have opted to join forces to produce TFT LCDs (thin film transistor liquid crystal displays) for computer monitor and television markets.

Today this joint venture, known as LG.Philips, was cemented by the announcement that an investment of more than $1 billion has been prepared to further expand capacity and create panel supply for the fast growing TFT LCD market. Production will begin in the first half of 2003.

TFT LCDs consist of a lower glass plate on which the TFT is formed and an upper glass plate on which the colour filter is formed. The injected liquid crystal then sits between these glass plates.

Hot on the heels of the opening of the world’s first fifth-generation TFT LCD manufacturing plant, P4, this new investment (P5) represents an expansion of that project. P5 will enable the production of even larger glass substrates (1100 x 1250), and a more expansive product portfolio in turn. LG.Philips LCD plans to be producing 120,000 fifth-generation ‘sheets’ per month by the end of 2003, establishing it as the world’s largest supplier of TFT LCDs.

“The P5 investment reflects the growing demand for larger panel LCDs, especially in the high growth LCD TV market,” commented Matt Medeiros, chairman of the joint venture board, and president and CEO of Philips Components.

“LG.Philips LCD has an excellent track record of investing at the right time to take advantage of demand, driven by new applications — P5 is another example of this. As a strategic investment, and a key supplier to Philips, both in branded and B-to-B products, LG.Philips LCD is supporting Philips’ leadership in displays, which, alongside storage, connectivity, and digital video processing, make up the technology pillars for the company’s future growth.”

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