JULY 2008 BEACONSony FED Up - Negotiating to Buy Pioneer Factory
Sony needs facility to mass-produce FED panels in 2009
<Nikkei-TOKYO><Jiji Press-TOKYO><July 2, 2008>In a story covered by both the Nikkei and Jiji Press, Sony affiliate Field Emission Technologies Inc. is negotiating with Pioneer to purchase a plasma panel factory. Sony plans to use the Pioneer plant to begin mass production of a new type of flat panel called FED (field emission display).
The Pioneer factory is located in southern Japan and is scheduled to cease production in January 2009. While the deal is still being discussed, Jiji Press says unnamed sources close to the negotiations have indicated the purchase price is expected to be somewhere between ¥20 billion and ¥30 billion (around $188 million to $283 million at today’s exchange rate).
Sony is expected to retain many of the 600 employees currently working at the Pioneer facility. The company plans to produce 10,000 26-inch panels a year with output initially targeted for medical and broadcasting equipment manufacturers. After that, the facility will produce 60-inch panels for entry into the television market.
Field Emission Technologies was spun off from Sony in 2006 and Sony currently holds 37.8% of the company.