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Tuesday, September 01, 2009
Sony to Form Strategic Alliance with Taiwan's Foxconn On LCD TVs

Sony announced that it has agreed to form a strategic alliance with Taiwan's Foxconn Electronics (Hon Hai Precision Industry Co. Ltd.) for the production of LCD TVs for the Americas region.

Based on this agreement, the Sony Group will sell to Hon Hai Group 90% of its shares in Sony Baja California and certain manufacturing assets related to Sony Baja California's Tijuana site in Mexico, which mainly manufactures LCD TVs for the Americas region. Following the sale, Hon Hai Group will hold 90% ownership of Sony Baja California and the Sony Group will retain a 10% share. The Tijuana site will remain a key manufacturing facility of Sony LCD TVs for the Americas region. Hon Hai Group will assume employment of employees at the Tijuana site.

Within its LCD TV business, Sony is concentrating internal resources towards areas that contribute to product differentiation, such as R&D, engineering and design, while also establishing a structure that enables the company to bring attractive products to market at the earliest possible opportunity. At the same time, by proactively leveraging external manufacturing resources Sony will also seek to reduce fixed costs, drive other cost reductions, improve profitability and achieve business expansion.

Completions of the transfers are subject to regulatory approvals in several countries.

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