Reg Hardware

Original URL: http://www.reghardware.com/2008/02/27/samsung_sony_lcd_rumour/

Sony to bolster Sharp LCD deal with fresh Samsung pact?

LCDs? We got 'em

By James Sherwood

27th February 2008 12:37 GMT

Sony's decision to team-up with Sharp to produce tenth-generation LCD panels may soon be followed by a second such deal, this time with Samsung.

Sony and Samsung already have a partnership, S-LCD, formed in 2004. Sony currently gets all its LCD panels, used primarily in its Bravia TV range, from S-LCD.

The deal with Sharp [1] will see Sony take a third of the output of a tenth-generation LCD plant to be run by a new JV, due to begin business in April 2009.

But, so that no one thinks Samsung has been left out in the cold, a company mole has since told Reuters that Sony and Samsung are discussing the establishment of a new joint LCD production line.

S-LCD currently punches out eighth-generation panels, suitable for producing 52in and larger LCD TVs. The tenth-gen facility will make panels that will be cut into 60in screens. It's not yet clear whether a new Sony-Samsung line will expand eighth-gen production or go straight to tenth-gen.

Sony’s not commenting on any further handshakes with Samsung for now. However, Samsung’s LCD president, Lee Sang-wan, stated this week that its existing partnership with Sony isn’t on shaky ground, despite Sharp's arrival on the scene.

A Sony exec has promised to keep its ties with Samsung for S-LCD panels.

What does look certain is that Sony is trying to widen its sources of LCD panels. It has said in the past that it hopes to sell 15-20m LCD TVs globally for the business year starting 1 April.

By working with Sharp and Samsung, Sony can make sure it holds onto the 19.5 per cent share of 2007’s Q4 LCD global sales market, which market watcher DisplaySearch recently stated [2] put the manufacturer into pole position for the period. Samsung’s wasn’t far behind though with 19.3 per cent.