Source: Dailytech.Com
Sony will spend $1.1 billion on the venture
Sony and Sharp are two of the larger companies in the LCD and electronics business. The two firms have announced that Sony will likely invest about 100 billion yen, or roughly $1.1 billion into a joint LCD venture with Sharp.
Sony had announced last year, reports Reuters, that it would be taking a 34% stake in a joint venture with Sharp to manage a Sharp LCD manufacturing facility. The facility in question cost Sharp 380 billion yen and is located in the Japanese city of Sakai.
Reuters reports that Sony and Sharp have not yet come to an agreement on the percentage of the stake and the investment split. Shares in both companies rose on the news with Sony up 2.2% and Sharp up 2.7%.
Final plans for the venture are expected to be complete by the end of July. Sony's initial investment is pegged at about 50 to 60 billion yen, but will eventually climb to over 100 billion yen. The deal benefits both firms differently. Sony will get a steady supply of LCD panels and Sharp gets a partner to help with the costs of the plant.
Sharp previously announced that it would be starting operating at the plant in October to provide screens for the LCD market as demand is starting to build. The facility is the first to use 10th generation glass substrates that are larger and reduce production costs.
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