Tokyo - At least temporarily, Sony will not move forward with plans to expand its stake in a joint LCD panel production plant with Sharp, according to reports from Japan Monday.
Sony had been expected to raise its interest in Sharp Display
Products from 7 percent to as high as 34 percent by the end of April, according
to Nikkei reports, but with supply outpacing television demand due to
competitive efforts from South Korean and Taiwanese manufacturers, Sony is
holding off on making further investments.
The Nikkei Business Daily said the decision was influenced by the
strong value of the Japanese yen against the dollar, which is giving panel
makers outside of Japan an advantage in delivering products at lower prices
than Japanese producers can comfortably match.
According to Nikkei, Sony will continue to study the situation
over the course of the year before deciding whether or not to increase its
Sony invested 10 billion yen in Sharp Display Products in
December 2009, with plans to slow raise its stake over time, Nikke said.