Post a CommentSharp, Sony team for LCD panels
The companies will partner on a large-sized LCD panel plant, which will use 10th-generation mother glass substrates and is expected to reach production capacity of 72,000 substrates per month.
By Suzanne Deffree, Managing Editor, News -- Electronic News, 2/26/2008
Sharp Corp and Sony Corp have partnered in the large-sized LCD panels and modules arena, today announcing a deal that will see the two Japan-based companies form a joint venture and share the financial burden of a Sharp LCD panel plant currently under construction in Sakai City, Osaka Prefecture, Japan.
The plant will use 10th-generation mother glass substrates and is expected to reach production capacity of 72,000 substrates per month after it initially starts at 36,000 substrates panels per month in March 2010.
While the two companies did not disclose their specific investments, Sharp has stated that the plant would cost around $3.2 billion. Investment in the yet-to-be-named joint venture is expected to be 66% Sharp and 34% Sony, which would make Sony’s investment approximately $1 billion.
In addition to alleviating some of Sharp’s financial burden from the plant, the agreement also gives Sony, which does not have its own 10th-generation LCD plant, a supply source for the panels. The panels produced by the joint venture will be supplied to Sharp and Sony in quantities corresponding to their respective investments. Sharp and Sony said they will also discuss the possibility to jointly develop components for LCD modules to further reinforce their mutual cooperation.
The two companies said they will enter into legally binding joint venture documentation by September 30, with plans to start the new company in April 2009.
Partnering in the LCD space has become a popular way to tackle the growing market: Hitachi and Matsushita earlier this month detailed an LCD panel alliance, and Renesas, Sharp, and Powerchip announced they would team for LCD drivers. According to recent data from the Semiconductor Industry Association, LCD TV units grew by more than 50% in 2007, making it one of the fastest growing segments with in consumer electronics last year.
