Sony’s departure from joint LCD operation could impact orders

According to a new report, Samsung’s full buyout of a shared LCD business with Sony may lead the former to reduce panel orders to Taiwanese suppliers.

Samsung’s decision to snatch up the entirety of long-running consumer electronics S-LCD operation may lead the new owner to shutter a Taiwan-based production line for one in China, said IT news publication and rumor mill, DigiTimes.

Announced by both companies last week, the transaction gives Samsung full operational control of the project. The company agreed to pay Sony 1.08 billion Won (over $866 million) for its half of shares in S-LCD, which it co-founded in 2004.

Few were shocked by the move. Sony’s LCD TV business has struggled for years, its products’ flaws well-documented by consumers.

Sony jumping ship from the partnership won’t be “completely beneficial” for Taiwanese outfits, DigiTimes added, but there’s a silver lining. The Japanese tech giant may place more orders directly to Taiwan-based companies and less with Samsung itself.

Global information technology manufacturing firm Compal Electronics Chairman Rock Hsu told The Taiwan Economic News that local LCD makers will benefit in the short-term thanks to Sony’s departure.

The deal is still awaiting regulatory approval, but should be completed before February, the companies stated.