Sanyo in TV joint venture with Quanta

TOKYO - Struggling Sanyo Electric Co. is setting up a joint venture in the TV business with Taiwan's Quanta Computer Inc., the two companies said Friday. Sanyo and Quanta, the world's largest maker of laptop computers, have agreed to form a company together to make and sell flat-panel TVs for the Sanyo brand, both sides said in a statement. Tokyo-based Sanyo has fallen behind in flat-panel TVs, which are growing in popularity around the world. Quanta Display, an affiliate of Quanta Computer, makes liquid crystal displays. The collaboration will take advantage of Quanta's manufacturing plants in China and supply chain, and Sanyo's global sales and service network, they said. In Taiwan, Quanta Computer's stock jumped 4.3 percent to 52 New Taiwan dollars ($1.63), and Quanta Display's stock rose 5.8 percent to NT$11.90 ($0.37). Sanyo, who share price rose 0.33 percent to 307 yen ($2.62), is projecting a 233 billion yen ($2 billion) loss in the fiscal year through March. The Japanese company has been undergoing restructuring, including job cuts, reducing factory space and dropping some businesses. Last month, Sanyo said it was combining some of their cell-phone operations into a joint venture with Finland's Nokia Corp. "We have outlined a major realignment of our TV business," Sanyo President Toshimasa Iue said. "By combining Quanta's strengths with Sanyo's capabilities in the TV business, I'm confident we conclude this principle agreement that we will produce added value for our stakeholders." Sanyo manufactures and sells 6.5 million TV sets world worldwide, mostly old-style cathode ray tube TVs. Barry Lam, chief executive of Quanta said the deal with Sanyo, with its extensive experience in the TV business, will make its operations more efficient. "We will strive to become the world's major TV maker," Lam said. Quanta controls more than 30 percent of the world market in notebook PCs and recently expanded into the flat-panel TV business. -AP