SI: Epson Gives Its Small And Medium-Sized LCD Operations To Sony For Free

[Christopher]

Sony said last week it would acquire part of Seiko/Epson’s small and medium-sized LCD operations by April 2010 for free. Sony said in March it would start talks with Seiko Epson on an alliance in small LCDs and was interested in Seiko Epson’s technology and output capacity of amorphous silicon thin-film transistor (TFT) LCDs, known as low-cost displays. Sony focuses on low-temperature polysilicon TFT LCDs, which offer better picture quality, in the small and medium-sized category. The addition of amorphous silicon TFT LCDs is expected to boost its competitiveness as a panel supplier and maker of mobile devices with displays, such as cellphones and digital cameras. Here is what the two companies have planned:

To be completed within 2009 (planned)

• Transfer of the sales function for small- and medium-sized TFT LCD business (excluding high-temperature polysilicon TFT LCDs, etc.) operated by Epson Imaging to the Sony group and secondment of sales personnel.

To commence on April 1, 2010(planned)

• Transfer of certain buildings and equipment and lease of certain land relating to amorphous silicon TFT LCD manufacturing from Epson Imaging (Tottori city, Tottori, Japan) to SMD.
• Transfer of certain intellectual property, including patents, software and technical information, relating to small- and medium-sized TFT LCDs (excluding high-temperature polysilicon TFT LCDs, etc.) from Epson to the Sony group.
• Secondment of certain Epson Imaging and other Epson group employees involved in the development, design and manufacture of small- and medium-sized TFT LCDs (excluding high-temperature polysilicon TFT LCDs, etc.) from the Epson group to the Sony group.

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