Sony May Purchase Some Seiko Epson Small/Medium LCD Manufacturing Assets

Sony announced that it planned discussions with Seiko Epson on an alliance in small/medium LCD panel manufacture including the possible purchase of some display assets from Seiko Epson. I am not sure what exactly the term “display assets” is referring to but I’m guessing that means small/medium LCD panel manufacturing assets or it could be IPs, or both. Seiko Epson’s shares jumped 7.4% to Â¥1833 on the morning of March 13, 2009. This is after Seiko Epson “… came to realize that it would be difficult to have an earnings recovery in the small and medium-sized LCD business on its own,” according to Minoru Usui, president of Seiko Epson. Sony stated that the two companies are planning to sign a legally-binding agreement by the end of June. This would be beneficial to Sony as it can increase its capabilities to manufacture small/medium LCD panels to incorporate into its digital still cameras (compacts and DSLRs), camcorders, MP3 players, mobile phones as well as for UMPCs. This is after Seiko Epson announced that it will quite the small/medium LCD manufacturing business amid a possible US$1 billion net loss in the fiscal year that will end March 31, 2009.

Source: Forbes, AFP, International Herald Tribune

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