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Sony to take back LCD TV production; reducing orders to Taiwan to 300,000 units in 2014

Max Wang, Taipei; Alex Wolfgram, DIGITIMES [Thursday 20 March 2014]



Sony to take back LCD TV production; reducing orders to Taiwan to 300,000 units in 2014

Max Wang, Taipei; Alex Wolfgram, DIGITIMES [Thursday 20 March 2014]


Sony is reportedly considering spinning off its LCD TV business and turn it into an independent subsidiary in July 2014, with plans to shift its outsourcing orders back to in-house production, according to industry sources.


The move could seriously drop TPV and Foxconn Electronics' (Hon Hai Precision Industry) combined LCD TV orders from Sony to below 300,000 units in 2014, down from seven million units in 2013, the sources said.


Sony's reported plans come as it hopes to better utilize its own manufacturing facilities in Southeast Asia, forming a vertically integrated supply chain to help it save on costs.
http://www.digitimes.com/pda/a20140320PD208.html

That could be interesting I read prior to this this they were going to increase outsourcing . I naturally assumed it would be from Foxconn,TPV,Compal etc .


I guess one could call this a reverse engineered outsourcing by spinning off the TV div. into an independent owned subsidiary and sourcing production from the parent. co. interesting maneuver . I wonder if Japan tax law enters into their decisions thus making this a favorable action and Sony able to favorably depreciate any losses from the subsidiary as they would be considered new business unit losses rather than continuing losses of an existing business unit. ? It could buy them time .


Hopefully Some product improvement will result rather than the usual decline of quality when cost cutting measures are employed .The US auto industry learned a brutal lesson there or at least one would like to think so. OTOH with a new focus on premium products it could be good in that respect

they will have more control and be able to utilize existing facilities at the same time.
 
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