June 1, 2012 – BUSINESS WIRE — Electronics gas supplier Linde LienHwa (LLH), The Linde Group’s joint venture with LienHwa MiTAC Group of Taiwan, signed a long-term deal with Samsung Electronics to supply gases for its latest Gen-8.5 thin-film transistor liquid crystal display (TFT-LCD) manufacturing plant in Suzhou, China.
Linde LienHwa will provide Samsung Electronics with a turnkey installation of the TFT-LCD plant’s bulk gases supply systems, with gas on line date at the end of 2012. Linde LienHwa will construct an on-site SPECTRA-N 30,000-series nitrogen generator with underground supply pipe. The contract is worth approximately RMB500 million (EUR50 million, USD62 million).
Linde is expanding its customer base in Asia, with Linde LienHwa positioned for growth in eastern China. The Samsung Electronics contract doubles Linde LienHwa’s capacity in Suzhou Industrial Park (SIP). Linde is a contracted gas supplier with the top 3 flat panel display (FPD) manufacturers in China, the company reports. It is also a sustaining member of the LCD TV Association.
TFT-LCD manufacturing requires large volumes of ultra-high-purity gases to create the thin-film transistors (TFT) that control the display’s pixels. Display makers are transitioning to larger-panel-size fabs, like Gen-8.5, for the improved cost/production equation. Samsung’s new 8.5 panel facility is constructed by Suzhou Samsung LCD (SSL), a joint venture between Samsung, SIP and TCL Corporation. SIP is expected to become China’s largest advanced LCD production cluster.
Samsung’s share of the US LCD TV market hit a record high in Q4 2011 (IHS), but globally, the LCD panel industry is tempering production in reaction to weak markets (NPD Displaysearch). In the near term, panel makers need to reduce their shipment plans to better react to soft demand and avoid inventory problems, said NPD Displaysearch. This industry-wide adjustment helps stabilize supply and demand.
Linde LienHwa (LLH) is a joint venture in mainland China between The Linde Group and LienHwa MiTAC Group of Taiwan. It supplies ultra-high-purity gases and related projects and services to the semiconductor, TFT-LCD, photovoltaic and LED industries. For more information, visit our website at www.linde.com or www.linde-gas.com/electronics