Tokyo - Sony Corp, which is the 2nd largest maker of consumer appliances in the world, said that it would acquire a 1/3rd stake in Sharp’s LCD panel plant expected to be complete by March 2010. This is an effort by Sony to cope with increasing demand for flat televisions.

This is the latest move in the list of alliances made by Japanese flat TV manufacturers in order to secure enough LCD panels while having initial investments under control to cope with greater price declines.

In addition to LCD panels, the joint venture will also manufacture LCD modules. LCD modules are display panels furnished with components like LCD driver chips and backlight unit.

The move decrease Sony’s dependence on chief supplier Samsung Electronics Co. of South Korea as LCD TV sales are expected to increase by 29 % this year. Lehman Brothers Holdings Inc and UBS AG forecast the shortage of LCD TV will continue in 2008.
” This will be a positive step for Sharp as it means a big buyer, which would keep the new factory engaged,” said Kazuharu Miura, analyst at Daiwa Institute of Research.

(more…)