E Ink and Sony Semiconductor Solutions are to set up a joint venture to develop new e-paper products and display systems. Each company will have 35% of the company, with VC firms holding the balance. The presidents of each company will sit on the board and E Inls’ president, Johnson Lee, will be the chairman. The company will be registered in Taiwan with capital of $13.7 million.
Analyst Comment
Sony Electronics has used EPD technology a lot over the years and also announced a new larger tablet that uses a 13.3″ display. (Sony eReader Has Big Pen Display) (BR)
The interesting part is the 30% of shares owned by venture capital companies. One could look at this as a way of securing funding for established companies, without investing into the existing business that may not offer much growth potential compared to new products that will show high growth rates for the first few years. From a product perspective, one has to scratch one’ head and wonder what area Sony want to enter based on supplying e-paper displays. (NH)
