Sony to transfer its US LCD manufacturing assets to Hon Hai

Sony is forming a strategic alliance with Taiwan's Hon Hai Precision Industry Co. Ltd. for the production of LCD televisions in the America 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 ("Tijuana site"), 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.

Sony said it would focus more on product innovation and lean its LCD manufacturing assets as part of new business strategy.