Samsung Electronics Co. and Sony Corp. launched a 50-50 joint venture Thursday in Asan city, South Chungcheong Province, to manufacture liquid crystal display (LCD) screens for use in next-generation LCD televisions.

In a launching ceremony, the two companies unveiled the long-awaited lineup of joint management, including Lee Jae-yong, the only son of Samsung Chairman Lee Kun-hee.

Chang Won-kie, vice president of Samsung Electronics, was tapped to take the helm of the joint venture, named S-LCD, and Keiji Nakazawa from Sony is to serve as the chief financial

officer, according to Samsung officials. The board of registered directors will consist of four officials from each of the two companies.

The firm, located at a LCD complex in Asan, about 100 kilometers south of Seoul, is to begin formal operation for the manufacturing of seventh-generation LCD screens in February 2005.

Under the agreement last year, the two companies raised 2.1 trillion won (1.8 billion US dollars) to set up the firm, with Samsung selecting the CEO and Sony appointing the CFO.

The seventh-generation LCD line, capable of producing eight 40-inch LCDs, six 42-inch LCDs and six 46-inch LCDs out of a single panel, will be twice as productive as the sixth-generation type. The new line is also expected to help 40-inch models emerge as the main screens for LCD TVs.

Industry analysts forecast that the tie-up with Sony will further cement Samsung's leadership position in the global LCD market, while Sony will be able to secure a stable supply channel for next-generation LCDs.

According to the estimate by market research firm Display Search, the world's LCD TV market is expected to grow from 4.2 million units to 30 million units in 2007, registering an annual average growth rate of 64 percent over the period.

Source: Xinhua