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March 25, 2003 in Social Responsibility News

SAMSUNG Electronics Sets Investment Plan for TFT-LCD Line No. 6

-Investment in new facilities set at over W1.29 trillion.
-Line No.6 will have a monthly capacity of 60,000 glass substrates measuring 1,100mm x 1,300mm.
-Outer shell will be completed this month; operation is scheduled for the end of this year.
-Samsung Electronics will secure monthly capacity of 160,000 fifth-generation substrates in the first half of next year.

Seoul, Korea - Mar. 25, 2003: Samsung Electronics Co., Ltd., the world’s largest provider of TFT-LCD display panels, today announced the investment for Line No.6, a TFT-LCD mass production line currently under construction in Chonan, Korea. Line No.6 is scheduled for initial start-up at the end of this year. The total investment for Line No.6 is 1,290.1billion KRW, this includes the initial investment of 66.1billionKRW announced last December. The new line will be capable of producing 60,000 fifth-generation (1,100mm x 1,300mm) glass substrates per month when in full operation in the first half of 2003.

Samsung Electronics started operation at Line No.5 last September. With the additional capacity from Line No.6, Samsung will have a monthly input of 160,000 fifth-generation substrates. This will broaden the gap between Samsung and the second ranking company in terms of fifth-generation capacity by at least a 30 percent advantage to Samsung and more than double the volume of Taiwanese manufacturers.

Samsung has been the world’s top producer of large-area TFT-LCDs for the past five years. The world LCD monitor market, a major source of TFT-LCD demand, totaled 32 million units last year and is expected to grow at least 50 percent this year to 49 million units. Samsung has new investment will broaden the gap and allow Samsung to maintain its lead over competition in the TFT LCD market.

Samsung’s TFT LCD line No.6 will produce 17-inch or larger monitor panels and TV panels of larger sizes than 20-inch. The current fifth-generation fabrication line uses glass substrates measuring 1,100mm x 1,250mm, that are most efficient for 17- and 19-inch production. Line No.6, on the other hand, adopts 1,100mm x 1,300mm substrates, which are more efficient for LCD TV applications.

Both the 1,100mm x 1,300mm and the 1,100mm x 1,250mm substrates will yield either twelve 17-inch or nine 19-inch TFT-LCDs. The larger substrate can also yield eight 22-inch or three 32-inch panels. Samsung plans to utilize the conventional lines for producing monitor applications and dedicate the new line to meet the growing demand for LCD-TVs.

In the LCD monitor market, the 17-inch panel has settled in as industry standards based on a stronger preference over other vendor choices. Samsung has initiated and supported seamless market availability of standard panel sizes. The 19-inch is also enjoying increasing popularity and Samsung has its glass substrates optimized to achieve maximum manufacturing efficiencies for seamless and sufficient market supplies.

Samsung is now reviewing plans for installing another advanced TFT LCD line. The seventh-generation TFT LCD line will reinforce the company’s status as market leader. Samsung’s conventional lines, located at Giheung and Chonan, are dedicated to producing small and mid-sized TFT-LCDs for cellular phones, notebook PCs and desktop monitors. The seventh-generation line will be established on a new 1.98million m2 (22.3million f2) site at Asan, located near Chonan.

About Samsung Electronics
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, and digital convergence technology. Samsung Electronics employs approximately 70,000 people in 87 offices in 47 countries. Samsung Electronics is the world’s leading producer of advanced semiconductors, TFT-LCDs, CDMA mobile phones, monitors and VCRs. Samsung Electronics consists of four main business units: Device Solution Network, Digital Media Network, Telecommunication Network and Digital Appliance Network Businesses.

The Device Solution Network specializes in semiconductor and TFT LCD display products for industrial, mobile and advanced computing applications, offering a full line of key solutions of DRAMs, SRAMs, Display Driver ICs, Smart Card ICs, TFT LCD panels and Flash memories. The Device Solution Network operates 11 overseas sales subsidiaries and mass production facilities to maximize on hand customer support. For more information, visit our website at ttp://www.samsungsemi.com

Samsung Semiconductor Inc., a wholly owned U.S. subsidiary of Samsung Electronics Co., Ltd., is located in San Jose, Calif. More information can be found at http//www.usa.samsungsemi.com/.

Samsung Semiconductor Europe, a wholly owned subsidiary of Samsung Electronics Co., Ltd., is headquartered in Frankfurt, Germany and London, UK with
sales offices all over Europe. More information can be found at http://www.samsungsemi.de

Unit count by size for Fifth-generation substrates

1,100x1,250mm²1,100x1,300mm²Monitor(in inches)14.1 161615.0151617.0121219.0992069LCD TV(in inches)22 wide 683223

TFT LCD Market Unit Forecast by Application

2002200320042005Notebook30.535.040.446.4Monitor 32.448.664.978.4LCD TV 66.289.0114.7139.1

[Source: Samsung Electronics]

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