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Sony’s departure from joint LCD operation could impact orders

Posted at 03 January 2012 00:36 CEST by Justin_Massoud

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.

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There are 1 comments

olddancer
MyCE Senior Member
Posted on: 04 Jan 12 01:29
    Perhaps the smartest thing Sony has done in years is bid Sayanara to Samsung and their sub standard panels. Although Sony won't be building panels for a while at least what they will be sourcing will be to "Sony" specs and not Samsung.
    As a Servicer, I see more Samsung for repair than everybody else put together, including the cheap "No Name" stuff from China.

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