Sony has announced that it will form a strategic alliance with Taiwan's Foxconn Electronics for the production of LCD TVs for the Americas market. 

Foxconn will acquire 90% of the Japan vendor's shares in Sony Baja California and certain manufacturing assets related to Sony Baja California's Tijuana site in Mexico.

Following the sale, the Japan vendor will retain a 10% share of Sony Baja California. The Tijuana site will remain a key manufacturing facility of Sony LCD TVs for the Americas region. Foxconn will assume employment of employees at the Tijuana site, Sony said.

Within its LCD TV business, Sony said it is concentrating internal resources towards areas that contribute to product differentiation, such as R&D, engineering and design.

At the same time, by leveraging external manufacturing resources Sony will also seek to reduce fixed costs, drive other cost reductions, improve profitability and achieve business expansion, according to the vendor.

Foxconn, in a filing with the Taiwan Stock Exchange on September 1, said the deal with Sony is expected to be closed by the end of September.

By: DocMemory
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