In 2004 Samsung and Sony forged a strong LCD production partnership under the name S-LCD. The two companies have now ended S-LCD and Samsung has bought Sony’s stake for $939 million. Sony and Samsung will instead enter into a “strategic agreement”.
Sony leaves S-LCD
In 2004 the two electronics giants invested in a new joint venture company called S-LCD. Samsung owned the PVA LCD technology and now received an investment partner, and Sony was able to secure a steady supply of LCD panels.
Sony and Samsung’s S-LCD partnership is over
Sony has already said that they were looking to leave the LCD partnership and now it is official. Samsung has bought Sony’s 50% stake in the S-LCD company for 939 million US dollars, leaving Samsung with 100 % ownership.
Instead the two companies enter into a “strategic agreement for supply and purchase of LCD panels”, which is interpreted as a deal to sell and supply LCD panels from Samsung’s LCD factories to Sony’s future LCD-TVs.
Sony hopes to secure a more flexible and steady supply of LCD panels in the future, with lower market risk and without the responsibility of operating a manufacturing facility. The sale will be closed by the end of January 2012.
Sony’s TV division is currently going through a phase of major changes. The first step was to split the TV division into three and Sony’s exit from the S-LCD partnership is part of the transition.