Sharp & Sony to Create LCD JV

26 Feb 2008 11:16

Sony Corp26 February 2008 February 26, 2008 Sharp Corporation Sony Corporation Sharp and Sony sign Memorandum of Intent to create Joint Venture for Large Sized LCD Panels/Modules Sharp Corporation ("Sharp") and Sony Corporation ("Sony") announced that todaythey signed a non-binding memorandum of intent to establish a joint venture toproduce and sell large sized LCD panels and modules, by splitting out from Sharpan LCD panel plant now under construction in Sakai City, Osaka Prefecture whichwill use 10th generation mother glass substrates. Certain information concerningthe joint venture is outlined below, and the two companies will negotiate ingood faith to enter into legally binding joint venture documentation bySeptember 30, 2008. The parties will aim through this collaboration to further strengthen Sharp'sadvanced LCD display technologies and Sony's competitiveness in the TV market. Once the joint venture agreement is entered into and becomes effective, andsubject to receipt of necessary government approvals, the new joint venture willseek to maximize the advantages gained from using the world's first 10thgeneration glass substrates to produce large sized LCD panels and modules thatdeliver the industry's highest levels of quality, cost and performance. Thesewill then be supplied to Sharp and Sony in quantities corresponding to theirrespective investments. Sharp and Sony will also discuss and study thepossibility to jointly develop components for LCD modules to further reinforcetheir mutual cooperation. The new company will endeavor to rapidly establish full and stable manufacturingoperations at a new state of the art facility producing large sized LCD panels,and, in coordination with other companies concerned, will realize the vision of"Manufacturing Complex for the 21st Century". New Company Overview-------------------- •Company Name: To be determined •Location: Sakaihama District, Sakai-ku, Sakai City, Osaka Prefecture •Date of Establishment:Scheduled for April, 2009 (pending further discussion) •Start of Operations: By the end of FY 2009 (planned) •Capital: To be determined (Sharp: 66%, Sony:34%) •Total Investment: To be determined (Sharp: 66%, Sony:34%) •Operations: Production of large sized LCD panels/modules (for LCD TVs) for sale to Sharp and Sony •Production Capacity: 72,000 substrates per month (initially 36,000 substrates panels/month) (Mother Glass Substrate input basis) This information is provided by RNS The company news service from the London Stock Exchange