June 27, 2005 – Royal Philips Electronics has agreed to sell its monitor and entry-level flat-screen television business to TPV Technology Ltd. TPV will take over Philips’ existing original equipment manufacturing (OEM) monitor business and produce monitors and entry-level flat TV products that Philips will continue to market and sell under its own brand, according to the Taiwan Economic News.
The business transfer from Philips to TPV was estimated at some US$2 billion, or 1.6 billion euro at current exchange rates. This includes the transfer of 750 million euro sales of OEM monitor business to TPV and 850 million for the outsourcing of Philips-branded monitor and flat TV products. Philips will become a substantial shareholder of TPV
TPV was established in 1990 in Fujian, Guangdong Province, mainland China, and the company’s holding company went public in both Hong Kong and Singapore, in 1999. Currently, BOE Technology Group Co. Ltd. of China is TPV’s largest shareholder
TPV currently runs three plants in China, in Beijing, Wuhan (Hubei Province), and Fuqing (Fujian Province), while Philips operates two production bases in the same nation, in Suzhou (Jiangsu Province) and Dongguan (Guangdong Province). After the tie-up, TPV will own five production bases in China and develop a more comprehensive global business deployment.
All of Philips’ Magnavox-brand plasma display panel (PDP) and LCD TVs sold in the US market will be contract supplied by TPV. Part of Philips-branded, under-29-inch monitors sold in Asia-Pacific and the US will also be supplied by TPV. In the European market, Philips will sell the said products shipped from its plant in Hungary