Personally, I think there should be much more unifying at Sony, but this is a good step. A good step for Sony to have better control over all of its subsidiaries and business units but also to capture the large market for material components for the LCD industry. Some analysts have claimed that materials are where the money is at. I agree. Due to the monopolistic nature of most LCD materials companies enjoying far north of 50% in market share, margins are much better than those participating at different levels of the LCD food chain.
So, Sony’s Miyagi Corp. that is focused on material and process technologies will merge with Sony Chemicals Corp., as the name hints, which has chemical specialties. These two, wholy-owned subsidaries, will be merged to form Sony Chemical & Information Device Corp, on July 1, 2006. I believe film development for LCD will be the focus of this new company. Whether it is brightness enhancement film (BEF), polarizer film or any type of film, much profits are to be had.
Source: Electronic Engineering Times