Sony, NEC joint venture for optical disc drives

Sony Corp. and NEC Corp. plan to start a joint venture to produce optical disc drives in April 2006, the companies announced Thursday.

While Sony will hold a 55% stake, NEC will take 45% share of the new company.

The joint business will operate globally and focus on the planning, design, manufacturing and marketing to manufacturers of optical disc drives (DVD and CD drives) for integration into products such as personal computers.

“Optical disc drives are key components for a broad range of devices and we are strategically focusing our development resources in this sector,” Sony President and Electronics CEO Ryoji Chubachi said.

Both companies combined generated about 220 bln yen (US$ 1.84 bln) in the optical disc drive businesses in 2004. (dpa)