Sony and Samsung have agreed to extend their LCD making partnership by building a new factory in South Korea costing $1.8B.
The plant will be based on eighth-generation LCD manufacturing technology capable of creating sheets up to 2.2m x 2.5m or 86″ x 98″ (each sheet containing multiple LCD panels). It is planned to be operation in Q2 2009 and will churn out 60,000 sheets a month.
This isn’t Sony’s only new plant: they also just partnered with Sharp for a $3.5B 10th generation plant due to come online in 2010.
What difference do new plants make over old ones? increased supply of panels at a lower cost per square inch, resulting in either cheaper TVs and/or bigger profits for Sony.