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It will recoup all of the ¥10 billion (US$126 million) investment it originally made in the venture in December of 2009.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



Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

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.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?