Sony has announced a new relationship with Taiwanese Company, Hon Hai Precision Industry Co. Ltd. (“Hon Hai”) to make their Bravia LED TVs, in a bid to cut costs and start making a profit on selling the range.
The deal with HHPI, follows a decision by Sony to stop making their own LED TVs but instead outsource production to third party companies in China, Taiwan and Sharp in Japan. It is not known whether the new company will make Sony Bravia 3D TVs.
Sony said that as part of its initiative to improve the profitability of its liquid crystal display TV business, a new strategic alliance has been signed with Taiwan’s Hon Hai Precision Industry Co. Ltd for the production of LCD TVs. Based on this agreement, the Sony Group will sell to the Hon Hai Group a portion of its shares in a Sony production factory, which currently manufactures LCD TVs.
Following the sale, the Hon Hai Group will hold about 90% and the Sony Group will retain about 10% of the shares in the Nitra factory, which is based in Europe. The employees currently working at the Nitra factory will be assumed by the Hon Hai Group upon the completion of the transaction. The Nitra factory will continue to be a key location for the production of Sony LCD TVs.