Sanyo, Quanta Computer in global TV alliance Reuters Fri Aug 11, 2006 9:34 AM ET
http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=technologyNews&storyID=2006-08-11T133439Z_01_T160362_RTRUKOC_0_US-SANYO-QUANTA.xml OSAKA/TAIPEI (Reuters) - Sanyo Electric Co. Ltd. and Quanta Computer Inc. said on Friday they had agreed on an alliance in the TV business, albeit a much narrower one than they had initially hoped for. Loss-making Japanese consumer electronics maker Sanyo and Taiwan's Quanta Computer said their cooperation would include unified platforms and joint procurement of parts and materials. "What we are announcing today is just a first step in our cooperation," Sanyo director Mitsuru Honma told reporters. "We aim to make our joint business more powerful. We are deep in talks to raise the level of our cooperation early next year." As part of the alliance, Quanta Computer will take a 19 percent stake in a new company established through a spin-off of Sanyo's TV development and procurement operations. The new entity, to be capitalized at 100 million yen ($865,900), will be founded on October 2. In March, Sanyo and Quanta, the world's top contract laptop PC maker with display unit Quanta Display Inc., agreed in principle to set up a joint venture to make and sell flat TVs. But in April, Taiwan's AU Optronics Corp. agreed to buy Quanta Display, casting a shadow over the viability of the proposed venture. A Sanyo spokesman said there are some issues that need to be ironed out before Sanyo and Quanta Computer reach an agreement on a full-blown integration of their flat TV operations -- though the sale of Quanta Display to AU is not one of them, he said. Osaka-based Sanyo is a major manufacturer of cathode-ray tube TVs, but it has a limited presence in the fast-growing flat TV market, which weighs on the growth potential of its TV operations. Sanyo had a 1.8 percent share in the global LCD TV market in 2005 in unit terms, according to research firm DisplaySearch. That is far behind top LCD TV makers Sharp Corp. with 16.7 percent and Philips with 13.7 percent. "As for the joint venture for the flat-panel part, we hope to achieve a conclusion with Sanyo before the end of July next year," a spokeswoman for Quanta Computer said. Sanyo is considered one of the weakest players in the cut-throat electronics industry, unable to produce goods efficiently enough to keep pace with the likes of Panasonic maker Matsushita Electric Industrial Co. Ltd. and Sharp. Sanyo also said it will move its TV division's headquarters to the United States. It expects the TV operations' relative independence from the rest of the company to help the unit speed up decision-making and restructuring. Honma expects Sanyo's TV operations to turn profitable in the current business year to March 2007. The struggling electronics maker's company-wide restructuring efforts have not necessarily progressed smoothly. In February, Sanyo reached an agreement with Finland's Nokia to jointly make mobile phones using the CDMA standard. But the world's largest cellphone maker scrapped that plan in June. Prior to the announcement, shares in Sanyo closed up 2.7 percent at 226 yen, outperforming the Tokyo stock market's electrical machinery index, which fell 0.35 percent. ($1=115.48 Yen) ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
