TOKYO Sony Corp. established ST Mobile Display Corp. (STMD) on Thursday (March 31) as its second low temperature polysilicon thin-film liquid crystal display production base to boost panel production.
In January, Sony announced it would acquire Chi Mei Optoelectronics' LCD plant in Yasu, Shiga Prefecture, Japan, for $173 million. The plant was operated by International Display Technology, a Japanese subsidiary of Chi Mei.
Under the deal, Chi Mei has spun off the Yasu operation into a new company, with Sony taking a 80 percent equity position. Toyota Industries Corp., which formed a joint venture with Sony in 1997 to produce low temperature poly silicon LCDs, is taking a 20 percent stake.
Sony will invest about 27 billion yen ($252 million) in the new company, which will produce 550 x 650mm glass substrates. Production is slated to begin April 2006, with capacity expected to ramp up to 25,000 substrates per month.