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Sony to Buy 1/3 of Sharp's $3.5 Billion LCD plant |
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Written by Philip Buonpastore
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Tuesday, 26 February 2008 |
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TOKYO -
Reuters reports that Sony Corporation said that it would take a one-third stake in
Sharp's $3.5 billion LCD panel plant, which is set for completion by March
2010, to meet the rising demand for flatscreen televisions.
It is the
latest alliance among Japanese flatscreen TV makers, as they attempt to secure
enough supply while still keeping investment low in the face of falling prices.
Sony
gains another panel supply source in addition to a previous LCD venture with
Samsung Electronics, and the deal gives Sharp a partner to share the
large investment, while bringing additional work to the factory.
The LCD factory, which will become
the world's largest, is planned as a joint venture with Sony, with Sharp retaining a 66 percent ownership.
The
companies have declined to say how much they would invest.
"This
agreement is a very big step for Sony as we strive to become the world's number
one TV maker," Sony President Ryoji Chubachi told a news conference.
Sony
and Sharp are the second and third largest LCD TV makers in the world, behind Samsung,
according to flat panel research and consulting firm DisplaySearch.
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