Sony, which has an established brand with its Bravia LCD TVs, is planning to outsource manufacturing of LCD TVs for the American market, to Taiwanese company Hon Hai Precision Industry, better known as Foxconn. Today Hon Hai makes PlayStation 3 consoles and other products for Sony. Hon Hai is the world’s largest contract manufacturer and also makes iPod and iPhone for Apple, PCs for Dell, and much much more.
Sony instead wants to focus on internal projects to make its products stand out more, but also wants to reduce standing costs, increase profits and enable faster expansion. Hon Hai will buy 90% if Sony Baja California SA de CV, located in Tijuana, Mexico. Sony plans to keep the remaining 10% of the operation but the deal has not yet been finalized.
