Sony expands LCD business with Chi Mei deal
January 10, 2005, Tokyo, Japan--Sony plans to acquire the Japan-based liquid-crystal display (LCD) operations of Chi Mei Optoelectronics (Taiwan) for $176.2 million. Sony said the purchase would enable the production of up to 65,000 liquid crystal display panels per month, up from about 40,000 at present.
Under the deal, Sony will own all the shares of a new company spun-off from Chi Mei's Japan-based affiliate, International Display Technology. Sony will acquire IDTech's factory and equipment in Yasu city, about 220 miles southwest of Tokyo. Sony will also hire IDTech's 420 workers and plans to spend $257 million to refurbish the plant.
"We expect the market to dramatically grow from now," said Ryoji Chubachi, executive deputy president and chief operating officer of Sony.
Chi Mei acquired IBM's TFT LCD plant in 2001 and formed IDTech in a Taiwan-Japan joint venture. The company was the world's sixth-largest producer of thin-film-transistor LCD panels in 2003, specializing in medical equipment monitors.
Last year, Sony signed an agreement with South Korea's Samsung Electronics Co. to begin producing next-generation LCDs in 2005.