Latest News

SEOUL, South Korea, June 24, 2002-Following on the heels of its opening of the world's first fifth-generation thin-film transistor liquid crystal display (TFT-LCD) manufacturing factory last month (the "P4" factory), LG.Philips LCD Co., Ltd. (CEO: Bon Joon, Koo), a leading innovator of LCD technology, today announced plans to further expand its fifth-generation* (above 1.0 meters per side of substrate glass) manufacturing capacity- known as "P5." The company plans to invest over $1 billion (USD) to expand its latest state-of-the-art facility, with production beginning in the first half of the 2003. "P5" will use even larger glass substrates (1100 x 1250 mm) than those used originally in "P4" (1000 x 1200 mm)-having both will enable a more comprehensive line-up of large-panel LCD offerings and a complete product portfolio.

Like "P4", "P5" will begin its first phase ramp-up by producing 30K sheets per month, and is expected to reach full production capacity of up to 60K sheets per month by the end of 2003. Combined with the 60K sheets per month total production capacity from the original "P4," LG.Philips LCD will be producing 120K sheets per month of fifth-generation glass by the end of 2003-making it the largest supplier of TFT-LCDs.

According to iSuppli/Stanford Resources (San Jose, Calif.), larger screen sizes above 10-inches for monitors and TVs will be a major factor in the supply/demand balance over the next few years. LCDs for desktop monitors and large size TVs are forecasted to grow from 30.9 million units in 2002 to 104.9 million units in 2006 (a CAGR of 36 percent). Shipments of TFT-LCD panels larger than 16 inches for monitors and TVs are expected to grow even faster, at a CAGR of 46 percent during this period. LG.Philips LCD is committed to supporting larger screen sizes for both monitors and TVs.

Commenting on today's announcement, Paul Semenza, executive vice president of iSuppli/Stanford Resources, noted that LG.Philips LCD has been the leading TFT-LCD module supplier for monitors since 2000. "LG.Philips LCD's ramp-up of the world's first fifth-generation factory last month will give the company the largest TFT-LCD output capacity in the third quarter of 2002, and enables it to maintain its focus on large monitor and TV panels."

"Our expansion efforts will further position us as the large screen TFT-LCD leader and enable us to meet customer demands for a full line-up of displays in all sizes ranging from 15-inch to over 30-inch wide screens for premium monitor and TV usage," noted Bruce Berkoff, LG.Philips LCD's executive vice president of marketing. "Furthermore, our timely investment with "P5" reinforces LG.Philips LCD's ongoing commitment to drive the industry by setting standards and continuously pushing the technology envelope."


*Generation Definitions:
* 4th generation(~year 2000+): Any side between 800 mm and 1000 mm
* 5th generation(~year 2002+): Both sides between 1000 mm and 1500 mm
6th generation(~year 2004/5+): Any side between 1500 mm and 2000 mm