Royal Philips Electronics has agreed to transfer its OEM monitor business to TPV Technology, a partnership that the companies said would create the largest manufacturer of displays in the industry.
The US$2 billion partnership agreement calls for Philips to turn over all of its OEM responsibilities for PC monitors and entry-level flat TVs to TPV but maintain its own, branded monitor headquarters in Taiwan. Philips' Chungli, Taiwan-based development centre will go to TPV under the deal, according to the companies.
Provided all approvals are granted, the deal is expected to close in mid-2005. About 1700 Phillips' employees worldwide will be affected by the deal, the companies said.
TPV designs and produces CRT and flat-panel PC displays, and it maintains the AOC and Envision brands. TPV executives said the deal will allow it to reach its goals of becoming the world's largest manufacturer of PC displays and entering the flatscreen TV manufacturing market.
Philips' executives said the agreement will allow the company to follow through on its strategy of phasing out volume-driven businesses in favour of innovation on higher-end offerings.