Sony and Sharp delay joint venture plans

The global financial crisis begins to take its toll: Sony Corp. and
Sharp Corp. said that they postpone formal establishment of the joint
venture that will operate 10th generation LCD fab.

Faced with changes in the world economy, Sharp and Sony amended and
extended the non-binding memorandum of understanding to confirm their
mutual intent to postpone the targeted establishment of a joint
venture until March 2010, approximately one year later than originally
scheduled. Sharp and Sony will, through continued discussions of how
the two companies can best deploy their resources and expertise,
continue to negotiate in good faith and have set June 30, 2009 as the
target date by which to enter into a definitive agreement to establish
a joint venture that will be mutually beneficial for both companies.

Despite the postponement of the joint venture, Sharp plans to start
operating its new LCD panel factory in Sakai City, Osaka Prefecture
(currently under construction) by March 2010 as originally scheduled.

10th generation LCD factories will process substrates that have sides
of 3 meters or longer, whereas currently utilized 8th generation
factories process LCD substrates that have sides of 2.2 – 2.5 meters.