Sony Corp, the world's second-largest consumer-electronics maker, may invest in NEC Corp's manufacturing of plasma displays for flat-screen TVs, scrapping plans to buy a stake in a rival venture between Fujitsu Ltd and Hitachi Ltd.
Sony reached a basic agreement to finance plans to expand production in return for NEC's commitment to design its displays for Sony TVs and guarantee a steady supply, said officials from Sony and NEC, who declined to be named. They haven't yet signed a final contract, they said.
Sony, maker of Wega televisions, needs a stable supply of plasma displays because wall-mounted televisions are gaining popularity among consumers over bulkier sets using cathode-ray tubes. The investment will also help NEC financially as it wants to catch up with growing demand by boosting production capacity.
Shipments in Japan rose 4.6 times to 11,000 units in April from a year-earlier period.
RSS