Sony Sells Samsung Its Half of LCD Manufacturing Venture for $940 Million

Sections: TVs

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Sony and Samsung have had a jointly owned LCD panel production planet for years, applying the economies of scale to benefit both companies’ TV business. Since Sony’s TV business is not in the best of shape, they are even outsourcing some of the production to Chinese OEMs on the lower end of the scale. Since the TV business is rather flat at the moment, it’s not surprising that Sony is looking for ways to mitigate some of the losses they’ve probably experienced in 2011. Samsung in the meantime has plenty of reason to snag some extra capacity, as their mobile phone and tablet business enjoys some of the biggest volumes of sales in the industry. Of course, Samsung and Sony are not the only customers of the plant; Samsung panels are found in a variety of other consumer products, from bargain TV brands, to even the Apple iPad

With increasing pressure inside Sony to get rid of the TV business all together, this fall’s reorganization and the divesting of the planet may be the first steps toward doing so. Of course, Sony also sold their CELL PS3 CPU manufacturing business to Toshiba, and then made a tidy profit buying it back a few years later when it didn’t turn out to be the miracle processor everyone thought it would be, so maybe there’s more to their plans than meets the eye here

Via: [Reuters]

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