Taiwan-based Hon Hai Precision Industry Co, the biggest contract manufacturer of electronics in the world, will produce liquid crystal display TVs and game consoles for Sony in mainland China, said a senior executive of the firm, media in Taiwan reported.
Hon Hai will produce, sell and distribute an estimated 2 million Sony LCD TVs and 4 million game consoles in 2010.Sony will be in charge of branding and marketing and hopes to take the largest share in the Chinese TV market.
The new cooperation, if successful, may be extended to other areas.
An institutional investor revealed that Hon Hai has plans to spend more than NT$10 billion to open home appliance chain stores in mainland China during the next two or three years.
The mainland market is expected to absorb 23 million to 25 million LCD TVs this year and 32 million to 35 million next year.
Reportedly, Hon Hai last month began building an industrial base in Chongqing to house production facilities in ten fields that include computer manufacturing, software development and service outsourcing.
Personal Note: This is great news as Sony is expanding to China. China is an untapped market and this will bold well for Sony products. China’s market buys between 23 to 25 million LCD and is expected to increase by 30% next year in the year 2010.