Samsung Sony joint venture S-LCD reduced capital by more than 15%

[High-tech LED News] South Korea's Samsung and Japan's Sony LCD screen manufacturing company S-LCD recently decided to reduce the joint venture's equity capital by 600 billion won (about 555 million US dollars), S-LCD capital will be reduced to 3.3 trillion won (about 3.50 billion US dollars), the reduction of funds reached 15.38%.

Sony and Samsung established S-LCD in a joint venture of 1.26 trillion won in 2004. Both parties hold 50% of each share. Over the years, they have increased their capital by more than 2 times to 3.9 trillion won (about 3.6 billion U.S. dollars), the first time since the establishment of S-LCD. Capital reduction.

S-LCD said that the capital reduction is to strengthen the financial structure, but the industry pointed out that this decision should be the company's awareness of the LCD industry's worries, and said that Samsung and Sony are likely to end the joint venture, gradually the entire market focus Turn to the OLED.

It is understood that Sony purchases 1.1 million to 1.2 million LCD panels per month from S-LCD. As the overall demand for LCD monitors weakens, especially in the Japanese market, Sony is unlikely to maintain its purchase volume.

It is reported that Sony will not increase its shareholding in Sony and Sharp's joint venture LCD companies for at least one year. Samsung's focus in this block will shift to partnerships with Chinese players and will expand investment in OLED screens.

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