Sony has announced that it will make no further investment in liquid-crystal-display panel joint venture with Sharp. Sony also has the right to sell its current stake to Sharp, the companies said. The news comes following Sharp entering into a manufacturing agreement with Foxconn taking a stake of around 10 percent in the Japanese manufacturer.
Foxconn will also take over up to 50 percent of the LCD production at Sharp’s plant in Sakai, Osaka. The Sakai plant will now be owned 46.5 percent by Sharp, the same amount by Foxconn, and 7 percent by Sony. The two companies have further amended their agreement to give Sony the right to sell its seven percent stake in SDP to Sharp in the event of a third party (such as Foxconn) entering in the partnership.