Samsung and Sony have been engaged in the S-LCD LCD panel production joint venture for seven years but after massive losses in the TV division, Sony now looks to end the relationship.
Sony to exit LCD joint-venture with Samsung
The S-LCD partnership provided Sony with access to Samsungâ€™s PVA LCD panel technology and a reliable shipment of LCD panels for Sonyâ€™s flat panel TVs.
Sony is planning to exit their S-LCD joint venture with Samsung
Sony has struggled to make their TV business profitable and like most Japanese electronics manufacturers Sony is looking to change course. Sony announced in August that they are planning major changes for the TV business and the split with Samsung seems to be the first major step in that process.
Sony is believed to have invested more than 1.6 billion US dollars in the S-LCD partnership in which Samsung owns 50.1 % shares because they own the rights and patents for the LCD technology. Now Samsung is either forced to buy Sonyâ€™s share or to find a new buyer.
Sony recently formed an alliance with Toshiba and Hitachi for production of small/medium-size LCD panels for handheld devices. Sony has also invested in Sharp's latest LCD-TV plant. We are still waiting for Sony to announce a new TV division strategy for the future. We will keep you updated in the coming months.