Sony-TCL alliance: is China key to the survival of Japanese TV brands?

Sony and TCL have just announced a strategic partnership in the home entertainment sector. The alliance marks the creation of a joint venture aimed at revolutionizing the audiovisual experience with next-generation TVs and audio equipment.

This partnership comes at a time when TCL has been strengthening its position in the display sector for several years by expanding its LCD panel production capacities. This dynamic raises a crucial question for Japanese TV brands: faced with the growing dominance of Chinese manufacturers, has China become the only way for these manufacturers, such as Sony and Panasonic, to remain competitive on the global market?

TCL: a key player in the manufacture of LCD TV panels

Even before embarking on this partnership with Sony, TCL had consolidated its leading position in the LCD market. In 2022, the Chinese manufacturer, via its subsidiary TCL-CSOT, acquired all of Samsung’s LCD panel patents, marking a major turning point. In April 2025, TCL continued its expansion with the purchase of LG Display’s last LCD panel manufacturing plant, located in Guangzhou. This acquisition strengthened TCL’s position, now leading nearly 23% of the world’s production of large LCD panels. With a total of nine production lines, TCL and its Chinese partners, such as BOE and HKC, now dominate over 70% of the global LCD panel market.

This strategic development enables TCL not only to position itself as a high-tech manufacturer, but also to offer Sony direct access to a large-scale supply chain for the production of televisions and other audio equipment.

A joint venture to combine technological expertise and large-scale production

The partnership between Sony and TCL is based on the pooling of specific skills. Sony, renowned for its high-quality image and sound technology, contributes its expertise in product development, while TCL, with its massive production capacity, handles the supply of LCD panels. The resulting joint venture will manage the entire value chain, from design to manufacturing, logistics and customer service. The aim is to create innovative products while optimizing production costs and time-to-market.

This alliance highlights Sony and TCL’s strategy to assert themselves in an increasingly competitive market, relying on an integrated approach that will enable them to innovate while remaining cost-competitive.

The future of OLED: will Sony switch suppliers?

While the partnership between Sony and TCL raises many questions, it also opens up a crucial debate about the future of OLED TVs. Sony currently sources its OLED panels from two major suppliers: Samsung Display (for QD-OLED models such as the Bravia 8 II and A95L) and LG Display (for classic OLED models such as the Bravia 8A and A80L). But what will happen if TCL, buoyed by its development of IJP OLED (Inkjet Printed OLED) technology, succeeds in expanding its production of OLED panels for large screens?

TCL is actively working on mastering the production of OLED panels using IJP technology, which could enable it to compete with LG Display and Samsung in the OLED field. If TCL succeeds in producing high-quality OLED panels, the Sony-TCL alliance could then become a major player in the OLED market, with complete control over the development and production stages. This would raise the question of a possible reorientation of Sony’s sourcing, which might prefer in-house-manufactured panels instead of continuing to source from Samsung and LG. This would be a game-changer, not least because it would give Sony greater independence in a sector where OLED panel production is still dominated by a few players.

The future of Japanese brands: China, a necessary way out?

With TCL and other Chinese manufacturers playing an increasingly important role in the TV market, the question arises: what does the future hold for Japanese brands? While Sony seems to be maintaining its position by joining forces with TCL, other Japanese brands are going through turbulent times.

Panasonic, for example, recently announced that it would end its current TV distribution model in Europe in 2026. This decision marks a strategic retreat on the part of the Japanese giant, which is reorganizing in the face of increased competition from Chinese companies. Other Japanese brands, such as Sharp, now a subsidiary of Foxconn, have also entered into alliances with Chinese industrial groups to secure their place in a market dominated by low-cost production and the growing power of Chinese manufacturers.

Panasonic’s withdrawal from the European TV market raises questions about the future of Japanese brands. Could these companies survive without adapting to the economic reality of China, which now controls a large proportion of LCD panel production? Some analysts raise the possibility that Chinese companies such as TCL, Hisense and BOE could take over market shares vacated by Japanese brands, or even invest in their assets to ensure a smooth transition.

The next victims of Chinese brand expansion: Samsung and LG?

The impact of the rise of Chinese manufacturers is not limited to Japanese brands. The next industry giants to have to adapt are likely to be Korea’s Samsung and LG, two world leaders in the production of TVs and audio equipment. While these two companies currently dominate the OLED and QD-OLED TV segments, they are facing increasing pressure from their Chinese rivals, notably TCL, which is developing similar technologies and ramping up production on a massive scale. The rise of TCL and other Chinese brands could therefore change the playing field, affecting the dominant position of Korean giants in the years to come.

Summary

The partnership between Sony and TCL marks an important step for the future of televisions, with increased production capacity and a response to Chinese competition. The future of Japanese brands seems increasingly tied to China, particularly in order to remain competitive against players such as TCL. Furthermore, if TCL succeeds in developing its OLED capabilities, particularly through IJP OLED technology, the Sony-TCL duo could well redefine the balance of the OLED market, becoming a major player alongside LG and Samsung.

Source: Sony