Sony, who are struggling to compete with surging Samsung, have confirmed that their chairman and CEO, Sir Howard Stringer, is set to meet with Samsung chairman, Lee Kun-hee this month.
The meeting, which is tipped for the 24th of May in Korea, could see the two companies working closer together. Samsung executives have not ruled out Samsung taking a stake in Sony, who have never made a profit from selling their Playstation PS3 gaming consoles or their Bravia LCD TVs.
Sources say that Stringer is keen to push for a closer manufacturing relationship and will ask for an increase in supply of liquid crystal display panels from Samsung. Currently, Sony Bravia TVs are made by Sharp and several third party manufacturers in China and Taiwan. They also take TV panels from a Samsung joint venture.
Samsung is also keen to get access to Sony content spanning movies and music, while Sony is keen collaborate in the development of 3D technology.
Samsung, the world’s largest LCD maker by revenue, and Sony formed a joint venture called S-LCD in 2004 to ensure stable procurement of flat panels for their products and have invested billions of dollars in the venture over the years. Samsung own 51% of the venture and they have been able to control supply, which at times has not benefitted Sony.
Last week, Samsung said that they will invest will over $21 billion in renewable energy and healthcare over the next decade, seeking “mega-trends” to help the world’s biggest electronics maker diversify away from its computer chip and mobile phone businesses.
The ambitious investment plans are expected to clear years of uncertainty over the group’s future business direction. Samsung, which is South Korea’s biggest conglomerate, generates one fifth of the country’s exports.
The new investment plans will help Samsung challenge rivals such as General Electric, Philips, and Sanyo Electric in the solar and energy management markets.
Samsung has also said that they will continue to strengthen its “competitiveness and market dominance” in the mobile phone and TV business.
Samsung said at that time that it will “substantially” increase its capital spending in both its memory chip and flat panel businesses from what it had previously forecast but didn’t give the revised figure.
A major investment by Samsung into Sony would make sense say analysts.
