TCL will make Sony’s next TVs in a deal to confront a common enemy: Samsung and LG
If you have felt an earthquake and you don’t know where it is coming from, the easiest thing is for it to come from Japan. Specifically, from the headquarters of a Sony that has been associated with excellence in image quality for decades and that ends of ceding control of its Bravia brand to the Chinese company TCL. Since the time of Trinitron technology (so currently sought after to play on retro consoles) until Wega and the current Bravia, the Japanese giant had earned a deserved space in the premium range. They did not manufacture their panels (they bought them from Samsung and LG), but they did fine-tune them to offer very purist cinematic experiences. On the other side of the pond, in China, TCL has grown in recent years until it became one of the largest panel manufacturing companies. Now, China and Japan are joining their paths thanks to a joint venture that will take advantage of “the high-quality audio and image technology that Sony has cultivated over the years.” And the accounts are favorable for TCL: while the Chinese will control 51% of the joint-venture, the Japanese will keep 49%. It makes… quite a bit of sense. Movement that sounds more like a win-win than a retreat Although Sony televisions have extremely high-quality panels and modes that are very suitable for both movies and, above all, for video games in conjunction with a PlayStation 5the market has become increasingly complicated. Sony’s brand value and its name make its televisions more expensive than those of the competition, and that competition (led by Samsung or LG), is tighter than ever thanks to its OLED and QD-OLED technology. TCL is not far behind. After a huge investment in plants within China, the company has specialized in manufacturing Gen 10.5 panels. This implies that they have an enormous production capacity, which in practice translates into an ability like few others to flood the market with large-inch televisions at rock-bottom prices. That’s where this joint venture makes perfect sense. In its statement, Sony has confirmed that the company will operate globally and carry out the entire process: development, design, manufacturing, logistics, sales and customer service for both televisions and home audio equipment. We believe this strategic partnership with Sony represents a unique opportunity to combine the strengths of Sony and TCL – Du Juan, President of TCL Electronics That name of ‘Sony’ and ‘Bravia’ is a perfect opportunity for a TCL that will see how it can operate a brand of international prestige. For its part, Sony gains muscle that it did not have until now thanks to the most powerful companies when it comes to producing large-scale panels. Of course, apart from that 51% over Sony’s 49%, and the possibility of using its name, TCL gains something else: penetration in Japan, a protectionist market that prioritizes Japanese brands, especially against arrivals from China. The Japanese company has commented that it will be at the end of 2026 when the binding agreements between the two will be closed in order to begin operations in April 2027. And although this is an interesting operation as a whole, TCL is the clear winner: it gains premium credibility without having to build it from scratch, while Sony dilutes precisely what made its brand valuable. Images | TCL, Xataka In Xataka | The next big chip crisis is beginning. And this time copper and water are responsible.
