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Thought you guys would find this news story interesting...


Adam



06/06 6:56A (RT) UPDATE 1-Sony turns to NEC for plasma display deal

Story 8083 (6501.T, 6701.T, 6702.T, 6752.T, 6758.T, I/APL, I/ASIA, I/ELC...)

(Updates with news of NEC talks)

TOKYO, June 6 (Reuters) - Sony Corp said on Thursday it

reached a deal with NEC Corp securing it a steady supply

of plasma display panels (PDPs), used in large flat-screen TVs,

and may help fund NEC's capital spending on PDP production.

A Sony spokesman said the two electronics conglomerates were

also considering technical cooperation in plasma displays but the

deal would not include a Sony investment in NEC's PDP operations,

which are due to be split off from the parent company in October.

Sony, the world's largest consumer electronics maker, has

appeared slow to act in the fast-growing flat-screen TV market

and does not produce its own plasma displays, seen as the most

promising technology in the 40 inches-and-above segment.

The company is cozying up to NEC after a deal fizzled with

Hitachi Ltd and Fujitsu Ltd , which jointly own

the world's largest plasma display maker, Fujitsu Hitachi Plasma

Display.

"We are considering funding some of (NEC's) capital

investment or cooperating on technology," a Sony spokesman said.

"This is not an equity deal."

Earlier on Thursday, the company said it had pulled out of

the deal with the Fujitsu-Hitachi venture.

In April 2000, Sony said it planned to pay five billion yen

($40 million) for a 15 percent stake in the firm, but the deal

was widely expected to fall through after Sony repeatedly said

over the past year it had not yet completed the purchase.

Although the plasma TV market is still small, research firm

DisplaySearch estimates that global demand will jump to nearly

four million units in 2005 from less than half a million this

year.

Competition has been heating up among manufacturers, with

Sony arch-rival Matsushita Electric Industrial Co Ltd

announcing last month it would spend 60 billion yen on a new PDP

plant and aimed to become the industry's leading supplier.

NEC, which posted a record 312 billion yen consolidated net

loss in the year to March and is struggling to clean up its

debt-burdened balance sheet, said last month it would split its

PDP operations into a separate company and seek an outside

investor to take a stake in it.

The Sony spokesman said his company had no plans to develop

PDP technology on its own.

Sony has been focusing much of its R&D effort in flat-screen

TV technologies on organic light-emitting diodes (OLEDs),

although mass-production of TV-sized OLED screens is not expected

until well into 2003, at the earliest.

Sony's shared ended Thursday trade unchanged at 6,970 yen,

while the Tokyo Stock Exchange's electrical machinery index

ended down 0.13 percent.

($1=124.15 Yen)

((Edmund Klamann, Tokyo Equities Desk +81 3 3432 8595
[email protected] ))

REUTERS

Rtr 06:56 06-06-02

.....Duplicate take.....

Story 8504

(Updates with Brussels dateline and Sony COO comments)

TOKYO/BRUSSELS, June 6 (Reuters) - Sony Corp, the world's

largest consumer electronics group, said on Thursday it had

reached a deal with NEC Corp for a steady supply of

plasma display panels (PDPs) used in large flat-screen TVs.

Sony is also expected to fund part of NEC's capital spending

on PDP production.

Sony chief operating officer Kunitake Ando told journalists

in Brussels Sony would make a financial investment to develop

plasma displays with NEC, but he said it would not take a stake

in NEC's PDP operations which are due to be split off from the

parent company in October.

"It is not for an equity stake," Ando said, adding that Sony

is "securing certain products for the long term."

Sony, the world's largest consumer electronics maker, has

appeared slow to act in the fast-growing flat-screen TV market

and does not produce its own plasma displays, seen as the most

promising technology in the 40 inches-and-above segment.

Ando said the agreement with NEC was non-exclusive, and NEC

was free to sell its flat panel displays to other electronics

makers.

Sony's arrangement with NEC follows a deal that fizzled out

with Hitachi Ltd and Fujitsu Ltd , which

jointly own the world's largest plasma display maker, Fujitsu

Hitachi Plasma Display.

Earlier on Thursday, the company said it had pulled out of

the deal with the Fujitsu-Hitachi venture.

In April 2000, Sony said it planned to pay five billion yen

($40 million) for a 15 percent stake in the PDP firm, but the

deal was widely expected to fall through after Sony repeatedly

said over the past year it had not completed the purchase.

Although the plasma TV market is still small, research firm

DisplaySearch estimates that global demand will jump to nearly

four million units in 2005 from fewer than half a million this

year.

Competition has been heating up among manufacturers, with

Sony arch-rival Matsushita Electric Industrial Co Ltd

announcing last month it would spend 60 billion yen on a new PDP

plant, aiming to become the industry's leading supplier.

NEC, which posted a record 312 billion yen consolidated net

loss in the year to March and is struggling to clean up its

debt-burdened balance sheet, said last month it would split its

PDP operations into a separate company and seek an outside

investor to take a stake in it.

The Sony spokesman said his company had no plans to develop

PDP technology of its own.

Sony has been focusing much of its R&D effort in flat-screen

TV technologies on organic light-emitting diodes (OLEDs),

although mass-production of TV-sized OLED screens is not

expected until well into 2003 at the earliest.

Sony's shares ended Thursday trade unchanged at 6,970 yen,

while the Tokyo Stock Exchange's electrical machinery index

ended down 0.13 percent.

(Additional reporting by Gilles Castonguay in Brussels)

((Edmund Klamann, Tokyo Equities Desk +81 3 3432 8595
[email protected] ))

($1=124.15 Yen)

REUTERS

Rtr 10:08 06-06-02

Additional Codes ( I/ELI, I/ENT, I/JP, I/MRG, I/WEU, I/EUROPE, I/BE, I/DPR)
 

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Interesting. I wonder by the Hitatchi/Fujistsu deal fizzled out. I wish they had elaborated.

Could it be dissapointment in the 42" panels?

Could it be the lack of a 50" panel? With NEC they can get 42", 50" and 60" panels from the same place.

Of course, it could be financial.
 

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Any deal that stops Sony buying those idiotic ALiS panels is great news. Fujitsu can barely muster enthusiasm for them anymore (really only sells one out of their four basic panels and it's price is so high, I wonder how few they sell). Sony will now sell "regular" plasmas and probably instruct their dealers to bash the ALiS ones. This will put an end to the fascists ranting about the superiority of the "true HD" ALiS displays in the plasma race.


Hallelujah!


mark
 

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There is more to this than meets the eye..


NEC has the market lead in the glass side...


They spun off their plasma division, which allows them to deal with their sales internally... ie... go make deals with other mf's to increase sales..etc with their glass (technology) the internal scalers and other components will very and do very from MF to MF.. ...


My sources say that NEC is going to kill pricing within the next 2 yrs... getting the 42 at a retail point of 3-4 k... The 50's will follow suit


Their glass is better than ALIS IMO...


Setting up these fabs is not easy and Sony, is way behind..... so NEC production costs are really low compared to the other fab's Sampo and Hitachi.. dont be surprised if you see more of this happening..


-a-
 

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I really need to quote myself from a thread a week ago.

Quote:
quote:

--------------------------------------------------------------------------------


Signs of an industry realignment have already emerged, with electronics conglomerate NEC Corp announcing last week it would split its plasma display operations into a separate company that will seek equity investment from a third party.


--------------------------------------------------------------------------------




This isn't exactly getting out of the market. It looks more like a business way of getting around the capital investment issue. Maybe we could take up a collection here and raise $250million fo the venture?


NEC doesn't have a consumer electronics market like Panny or Pioneer. I would expect that the third party would be a plasma wannabe like RCA or Sony. If you take the NEC glass and brand it Sony that might be interesting.
This was in response to this artical:

http://news.cnet.com/investor/news/...-0.html?tag=ats
 

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Quote:
Originally posted by divvy
Interesting. I wonder by the Hitatchi/Fujistsu deal fizzled out. I wish they had elaborated.

Could it be dissapointment in the 42" panels?
Quote:
Originally posted by rogo
Any deal that stops Sony buying those idiotic ALiS panels is great news. Fujitsu can barely muster enthusiasm for them anymore (really only sells one out of their four basic panels and it's price is so high, I wonder how few they sell). Sony will now sell "regular" plasmas and probably instruct their dealers to bash the ALiS ones. This will put an end to the fascists ranting about the superiority of the "true HD" ALiS displays in the plasma race.


Hallelujah!


mark
Of course that's what I really wanted to say. Thanks to rogo for articulating it so well :D


BTW, IUnknown, good call.
 

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Evidentally you haven't seen the Daewoo, this plasma is a definite contender in the race for the worst.


Peter, I didn't realize you were posting on any other threads...
 

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Am windowdressing to apperar independent...


pulling your leg.


Like Vincent Price used to chant in The Mad Hypnotist:


COME TO GROVE PLASMA .... ?!
 

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You need to post a animated GIF with "Come to grove plasma" up for about 50ms each second. Interspersed with your comparison shot of the 61, 37 and 32 inch models.
 

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It would seem to be, david, which makes Sony's rejection of an equity stake kind of odd.


They make it cleared they secured long-term product rights, but passed on equity.


I suspect it will make it easier for them to later abandon plasma in favor of OLED, which is Sony's fantasy. Whether it proves doable or not remains to be seen... We'll check back in 2009-10 for more info. :)


Mark
 

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I wish I had the money to invest in the plasma industry now, but unfortunately I can't really even afford to *buy* one yet. I would think that OLED is a non-factor for people considering an investment, as you can always get out of plasma with your handsome returns before OLED is a factor. Like you said, we'll check back in 2009-10. In the meantime, I suspect a lot of people will do very well investing in plasma.
 

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For those of you who don't speak Na... uh, German, the Google Toolbar's built in translator did an OK job on the page.


Mark
 

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Joshy, it's NEC glass - so what do you say now? Who'se IQ is lower than the diagonal of that Plasma screen?!


Unfortunately for Sony, it takes much more than just glass to make a plasma. They have to seriously revamp their scaling engine (sucks big time) and driving electronics. I assume NEC will help them with that as well.


Looks like Sony is finally ick of picking up the rear of this race.
 

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ofer...


Sony is buying (and using) NEC 50" screen because ALIS screen is not available at that size. It exist only as 32" 37" and 42".


With only this exception (50" screen) Sony will still use ALIS for all other sizes (also 42":D )


Have Fun Joshy
 

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Sony signed with NEC to use it's glass across its product line. I'm sure that soon the 42" (even though Sony just announced a new ALiS model based on the Fujitsu 4242) will use the new NEC HD glass.


Sony is not stupid but much more importantly Fujitsu is not stupid. No one is going to be making that junk anymore.


Mark
 
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