Sony is restructuring its TV business and folding its entire TV hardware operations into a joint venture with Chinese manufacturer TCL.
🤝 TCL Electronics will take a 51% controlling stake, while Sony retains 49%. The new joint venture will manage development, design, manufacturing, sales and logistics globally, continuing to operate under the Sony and Bravia brands.
The details
Strategic pivot: Sony is stepping back from the operational side of the low-margin TV hardware business, betting instead on scale, cost leadership and TCL’s display expertise. In return, TCL gains access to Sony’s image processing, audio technology and premium brand equity.
Timing: The agreement is not yet binding. Definitive contracts are expected by the end of March, with operations scheduled to begin in April 2027.
Market reality: Sony’s display segment (TVs, projectors) fell 10% to ¥597 billion (≈ $4.0 billion) in FY2025, ending March. Weakness in the display business continued to weigh on revenue and profits in the electronics division during H1 2025.
- Sony draws conclusions: The group is doubling down on its entertainment ecosystem (IP, games, film and streaming). TVs shift from a core business to a “brand + technology” building block within a broader content strategy.
📺 Sector context
The TV market is moving toward larger, higher-resolution screens, but price pressure is intensifying. TCL, Hisense and Xiaomi are expanding aggressively overseas, winning share through scale and cost advantages.
More Japanese manufacturers are exiting the TV business or giving up control. Sharp went to Foxconn, Toshiba to Hisense, Panasonic exited production. Sony now chooses a middle path: the brand and technology stay Japanese, while operational control moves to China.
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