Sony, Samsung to boost LCD jt production
Japan's Sony Corp. and Samsung Electronics Co. of South Korea have agreed to invest 1.9 billion dollars to boost joint production of liquid crystal display (LCD) panels, a report said Tuesday.
Sony has reached a basic deal with Samsung to split the cost of the 200 billion yen investment evenly, the Nikkei economic daily reported without naming its sources.
The move would underscore Sony's commitment to its alliance with Samsung in parallel to its tie-up in LCD panels with Japanese rival Sharp Corp. that was announced last week in response to fierce competition in flat televisions.
Sony and Samsung plan to increase output at their South Korean joint venture, S-LCD Corp., the Nikkei said in the report from Seoul.
The investment will pay for the construction of a new LCD panel factory that will begin mass production in the first half of 2009, it said.
Sony declined to comment on the report.
Demand is booming in the flat TV market but intense price competition is forcing companies to seek ways to drive down costs.
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