Although the impact of industry changes SANYO still plans and Quanta cooperation

Although the Japanese Sanyo Corporation and Quanta Computer Corp in Taiwan have announced their plans to build a new joint venture production of flat-panel TV products company in March, and the two sides last week announced the establishment of the global TV business strategic alliance. However, in a document submitted to the Taiwan stock exchange in August 11th, Quanta Computer Corp said the two sides were still discussing the feasibility of a joint venture to build a new flat panel TV product.

According to a news release released by Sanyo Corporation in August 11th, it has decided to sell its television product development and procurement business and set up a SANYO video technology company in October of this year. Quanta Computer Corp will invest 19% of the shares in the new company. Sanyo Corporation and Quanta Computer Corp in March officially signed a $65 million investment in the Taiwan area of the new letter of intent to invest in a joint venture, the two companies at the time claimed that the flat-panel TV new joint venture will be the main production and sales of SANYO brand.

Sanyo Corporation said on Friday, SANYO visual technology company will be located in Osaka, Japan, the initial establishment of a wholly owned by Sanyo Corporation, and then part of the shares transferred to Quanta Computer Corp.

According to a document submitted to the Taiwan stock exchange in August 11th, Quanta Computer Corp said that the two sides encountered a lot of difficulties in the development of their cooperation between the more than expected. In addition, due to the LCD TV industry in the first half of 2006, some important changes, Quanta Computer Corp and Sanyo Corporation need to spend more time to adjust their respective TV business strategy.

Insiders pointed out that the merger of AU Optronics Corporation and Quanta electronics company is the main reason why the influence between Quanta Computer Corp and Sanyo Corporation cooperation. Guanghui electronic company is a subsidiary of Quanta Computer Corp, the new company formed a joint venture Quanta Computer Corp and Sanyo Corporation will help Sanyo Corporation, ensure the LCD TV panel shipments Guihui electronic company. However, with AU Optronics Corp. and Quanta electronics company is likely to become a turning point, from the Sanyo Corporation may consider the issue from another angle.

AUO company announced that it will officially in October 2006 and Guihui electronic company merger in April 7th.

But a Sanyo Corporation executives said the strategic alliance between Sanyo Corporation and Quanta Computer Corp is only the first step in the new development strategy of Sanyo Corporation in the flat panel TV business. The new company will not only focus on R & D business, but also enhance the cooperation between the two parts of the relationship. Sanyo Corporation is still planning to work with Quanta Computer Corp, it is expected to release more details later this year.

Quanta Computer Corp's LCD TV division was established in 2003, in 2005, the sector's revenue accounted for 5% of total revenue. Laptop sales revenue accounted for 90% of the company's total revenue. Quanta Computer Corp is expected this year, LCD TV product sales will reach 500 thousand units, compared with last year's sales of 350 thousand units grew by 43%.