Sony is reportedly considering withdrawing from S-LCD, a joint venture set up by Samsung Electronics and the Japan-vendor, due to Sony's mounting losses in the TV segment. Large-size LCD panel makers such as AU Optronics (AUO) and Chimei Innolux (CMI) would benefit the most if Sony gave up its stake in S-LCD, industry sources said.
S-LCD was founded in 2004, with Samsung holding 51% of the company shares and Sony owning the rest 49%. Sony has been suffering losses in its TV business for seven years since the establishment of S-LCD, with an accumulated losses of US$6 billion.
According to Japanese media, Sony is negotiating with Samsung concerning the withdrawal and is expected to work out an agreement by the end of 2011. Sony and Samsung have declined to comment on the speculation.
Sony has lost its leadership to Samsung and LG, descending to third place in the global TV market. Samsung accounted for 22% of the world's flat-panel TV shipments in second-quarter 2011, while LG took up 14%. Sony occupied only 11% of the market, the sources said.
The sources pointed out that Samsung has dominated the world's major markets. Sony has also been affected by Japan's shrinking TV market, they said. Overall TV shipments to the Japan market may go down to seven million units in 2012 from the estimated 13 million units in 2011.