X-bit labs

Sharp and Sony to Jointly Produce LCD Panels.

Category: Other

by Anton Shilov

[ 02/26/2008 | 02:46 PM ]

Sharp Corp. and Sony Corp. announced that today they signed a non-binding memorandum of intent to establish a joint venture to produce and sell large sized LCD panels and modules, by splitting out from Sharp an LCD panel plant now under construction in Sakai City, Osaka Prefecture which will use 10^th generation mother glass substrates.

Once the joint-venture agreement is entered into and becomes effective, and subject to receipt of necessary government approvals, the new joint venture will seek to maximize the advantages gained from using the world’s first 10th generation glass substrates to produce large sized LCD panels and modules that deliver the industry’s highest levels of quality, cost and performance. These will then be supplied to Sharp and Sony in quantities corresponding to their respective investments. Sharp and Sony will also discuss and study the possibility to jointly develop components for LCD modules to further reinforce their mutual cooperation.

The new joint venture, which will start operations by the end of fiscal 2009 (by late March ‘09), will be controlled by Sharp with its 64% stake, whereas Sony will own 36% stake. Final production capacity of the new fab will be 72 thousand substrates per month, but initially 36 substrates substrates panels will be made a month.

The two companies will negotiate in good faith to enter into legally binding joint-venture documentation by September 30, 2008.

Sony and Sharp are planning to create joint-venture following other makers of LCD TVs from Japan, which want to cut-down costs and improve manufacturing efficiencies.