Sony pulls out of LCD JV with Sharp, gets US$126 million investment back

Sony first invested in Sharp's LCD subsidiary in 2009

Sony said Thursday it will pull out of its over three-year LCD TV panel joint venture with Sharp, part of Sony's ongoing attempts to reform its foundering TV business.

Sony said in March it was canceling a planned additional investment in the venture, and its eventual exit was widely expected.

It will recoup all of the ¥10 billion (US$126 million) investment it originally made in the venture in December of 2009. Sony holds about 7 percent of the company, with the rest owned by Sharp. The subsidiary operates a panel factory in western Japan, where Sharp has a massive manufacturing complex.

The announcement comes as both companies struggle to make their TV businesses profitable. Sony has repeatedly said it will not pull out of the business despite years of losses, but will instead focus on selling fewer sets at higher profit margins, and move to acquire panels instead of producing them in-house.

Sharp has shifted some production capacity to panels for smaller devices such as tablets, and turned to foreign partners with deeper pockets, such as Hon Hai Precision Industry, the parent company of Foxconn Electronics and one of the world's largest electronics manufacturers. The companies said in March that Hon Hai will invest ¥66.9 billion to acquire a stake in Sharp.

The plant run by the joint venture produces so-called "10th generation" LCD panels, among the largest in the world. Each measures roughly three meters by three meters and is best suited to making TVs that are 40 inches or larger in size.

Sharp has attempted to spur demand for larger sets in markets such as the U.S. and Japan, hoping to leverage its cost advantage.

Sony will receive payment from Sharp for its share of the venture by June. Both companies said they expect no material impact on their bottom line from the deal.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?