Samsung terminates partnership with Sony
By Kim Yoo-chul Samsung Electronics is ending its alliance with Japan’s Sony on their joint LCD venture, after the Tokyo-based firm has consistently suffered from massive operating losses from its TV business. ``Samsung has agreed with Sony to buy its entire stake in the S-LCD joint venture for 1.08 trillion won,’’ Samsung spokesman Song Cheol-gyu said Monday. Since April 2004, Samsung and Sony have been operating two LCD-making facilities at Samsung’s manufacturing complex in Tangjeong, South Chungcheong Province. Sony holds a 50-percent stake in S-LCD in an attempt to secure stable supplies of the key parts. S-LCD generated 11.37 trillion won in revenue last year and the joint venture was mainly producing 40-inch LCDs for Samsung’s PAVV and Sony’s BRAVIA TVs. ``The termination of the venture comes two months after Sony officially requested to end the partnership in October,’’ Song said. The separation comes after Sony’s November announcement of a $2.2 billion annual loss in its TV division due to poor demand and a stronger yen. Sony chief executive Howard Stri