Under the terms of the Memorandum of Understanding (MOU), the new joint venture will be 51% owned by TCL and 49% by Sony. While TCL will take the lead on operations, manufacturing, and supply cain management, the products will continue to carry the globally recognized Sony and Bravia names.
The Deal at a Glance
- Ownership: TCL (51%) / Sony (49%)
- Scope: Covers global product development, manufacturing, sales, and logistics for TVs and home audio.
- Binding Agreement: Expected to be finalized by March 2026.
- Launch Date: The new entity is scheduled to begin operations in April 2027.
Why Sony is Stepping Back
Sony’s decision follows a decade-long trend of Japanese firms exiting the increasingly low-margin hardware market.
- Low Margins: Intense price competition from Korean (Samsung, LG) and Chinese (TCL, Hisense) manufacturers has made the hardware business financially draining.
- IP-First Strategy: Sony is pivoting toward high-growth areas like gaming (PlayStation), anime (Crunchyroll), music, and film production.
- Manufacturing Weight: By offloading the cost of running factories to TCL—which is vertically integrated and owns its own panel manufacturing (CSOT)—Sony can keep its brand in living rooms without the massive overhead.
What This Means for Consumers
The partnership aims to combine Sony’s “Brain” with TCL’s “Body”:
- Legendary Processing: Future TVs are expected to still use Sony’s proprietary XR processors and audio algorithms, which are widely considered the best in the industry.
- TCL Hardware: The sets will be built using TCL’s advanced display technologies, such as the SQD Mini LED tech unveiled at CES 2026.
- Price Drop: Because TCL can manufacture screens far more efficiently, analysts expect Bravia TV prices to become significantly more competitive by 2027.
| Feature | Sony’s Contribution | TCL’s Contribution |
| Technology | Image Processing (XR) & Audio | Display Panels & Hardware |
| Brand | Legacy & Premium Positioning | Manufacturing Scale |
| Operations | Design Oversight | Logistics, Sales & Service |
Conclusion: The Final Japanese Giant Retreats
Sony was the last major Japanese manufacturer to maintain a significant internal TV operation after names like Toshiba, Hitachi, and Mitsubishi exited the sector entirely. This deal confirms that the global TV landscape has now solidified into a direct battle between South Korea and China. For Sony fans, the hope is that a “TCL-built, Sony-tuned” Bravia will finally offer high-end performance at a mid-range price.
