The smooth partnership between Sony and Sharp seems to have run into problems, of late. Both the companies have revealed that the joint venture agreement between them will undergo some alterations.
Back in July 2009, Sharp and Sony came together to form Sharp Display Products Corporation (SDP). The joint venture was to manufacture and sell large-sized LCD panels and modules.
According to the latest reports, Sony will be active in the partnership without providing any more capital funds for the project.
In addition, both the companies have decided to allocate a new time period till September for studying the future plans. The study period includes Sony’s future share management and the dealings of large-sized LCD panels and modules with SDP. For SDP, this is an important step as Sony has all the freedom to buy back their shares and leave the project.
Though the amendment reasons are unclear, it is reported that the oversupply in the LCD market and the decreasing strength of Japanese yen might have prompted Sony to rethink on their current partnership with Sharp.
If the present situation worsens, there are chances that this joint venture between Sony and Sharp might even break off. It is really challenging for Sharp to handle the SDP operations as the there will be no further financial assistance from Sony.