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Sony and Samsung agreed to cooperate in building a $2 billion expansion of an LCD manufacturing facility, adding to their existing $2 billion joint venture started in 2004 known as S-LCD Corp. After initially lagging behind, Sony raced to the top in the LCD flat panel derby last year, selling more LCD TVs in the fourth quarter of 2005 than any other company mainly because it had access to a bigger supply of the LCD panels.

Sony and Samsung currently manufacture 40-inch LCDs in their joint venture, and will begin making larger panels with this new deal. The new facility is expected to begin mass production in about 18 months, with a capacity of 50,000 units per month.

Samsung, Sony to build new LCD line [Yahoo News, via Newlaunches]