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Sony ends LCD alliance with Samsung

Posted: 28 Dec 2011 ?? ?Print Version ?Bookmark and Share

Keywords:LCD panel? LCD manufacturing? panel production?

Sony Corp. is selling its entire stake on its LCD joint venture with Samsung Electronics Co. Ltd. The joint venture, S-LCD Corp., will now become a wholly owned subsidiary of Samsung.

Under the terms of the agreement, Samsung will pay Sony approximately $937.44 million (around 1.08 trillion South Korean won). The share transfer and payment are targeted to close by the end of January 2012, subject to necessary approvals from regulatory authorities.

Japanese firms form LCD JV
Despite the companies' solid technological base, the noise that the JV will be making will not target large panel firms, but the highly unpredictable small to medium panel market, currently dominated by makers in Korea and Taiwan. Read the full store here.

Concurrently, the two companies have entered into a new strategic agreement for the supply and purchase of LCD panels with a goal of enhancing the competitiveness of both companies. The agreement also allows Sony and Samsung to continue cooperative engineering efforts focused on LCD panel technology.

For Sony, this transaction will enable it to monetize its shares in S-LCD and aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility. With whole ownership of S-LCD, Samsung anticipates heightened flexibility, speed and efficiency in both panel production and business operations.

Established in April 2004, S-LCD provide both of its parent companies advanced and cost-competitive LCD panels. According to Sony and Samsung, the joint venture contributed to the expansion of the respective parties' TV businesses, and the large-sized LCD TV market overall.

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