Sharp, Sony postpone LCD joint venture plans

Sharp and Sony have decided to delay the targetted start of a joint venure LCD (liquid crystal display) production and sales venture.

Sharp and Sony have decided to delay the targeted start of a joint-venture LCD (liquid crystal display) production and sales venture.

The two companies said changes in the world economy have pushed them to extend talks, originally started almost a year ago, and put-off by one year the targeted start of the new venture to March 2010.

The companies will continue to talk under a memorandum of understanding that was signed in February last year and now plan to reach a definitive agreement on the venture by the end of June this year.

The planned joint venture was supposed to start operating this year and take over a new LCD factory that Sharp has already started building in Sakai in western Japan. Through the new venture Sony would have shouldered roughly 34 percent of the cost of the ¥380 billion (US$4.2 billion) factory.

Sharp said the change in schedule for the joint venture won't affect the schedule of the new Sakai plant, which will begin operations in March 2010.

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