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Sony Investing Over ¥100 Billion in Sharp LCD Production

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Sony Investing Over ¥100 Billion in Sharp LCD Production

Sure, Sony's ¥22 billion investment in OLED development was impressive, but full-scale production of OLED TVs is a way off yet, which is presumably why Sony feels confident committing over ¥100 billion (£641 million) of investment into a joint venture with Sharp, manufacturing LCD panels.

The end result will be a ¥380 billion LCD panel factory of which it was previously reported Sony plans to take a 34 per cent stake in and while the full details of the deal are apparently still being worked out, Sony's initial investment is likely to be in the ¥50-60 billion region, rising to that ¥100 billion plus total later. As a result of its investment Sony will secure a supply of panels for its next generation LCD TVs while Sharp obviously receives a not-insignificant financial assistance in the establishment of the panel production plant. Apparently the deal should have been finalised last month but, as a result of the economic downturn, was delayed. Given the costs involved that's hardly surprising.

The resulting plant - sited in Sakai, western Japan for the curious - will be the world's first to use 10th generation glass substrates. The larger size of these makes per-panel production costs lower, which will hopefully result in cheaper TVs for us consumers.

Link:

Reuters.

Max

July 28, 2009, 4:36 pm

Err, you seem to have a case of misconversion...





100bn JPY = 631m GBP





Also knowing a bit about the situation, the article has it wrong, the minimum investment is 100bn JPY. The deal stipulates that each company must invest at least that amount or it won't go ahead. I imagine Sony will only do 50bn because of cashflow issues. Launching a new handheld console and PS3slim will have needed a big investment from Sony in tools and manufacturing over the last Q and in the next.





Also it is outdated, Sony will most likely be taking a larger stake than the one mentioned...

Hugo

July 28, 2009, 6:23 pm

Conversion is my fault for not looking closer at the wolfram alpha output - http://www17.wolframalpha.com/... - didn't notice it was converting Chinese Yuan, not Japanese yen :s Apparently it can't cope with the ¥ symbol.





As to your other comments, unless your going to cite a decent source, you might as well have said Sony is going to buy AOL and invest in Cadbury. Of course that's not to say that you might not be entirely right.

Max

July 28, 2009, 6:34 pm

Hugo, it seems unlikely that I'll discuss the matter any further than I already have, but I have a massive proven track record with this kind of stuff... Not over here of course ;)

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