Royal Philips, TPV In Tune On Display Business

The $2 billion partnership agreement calls for Philips to turn over all of its OEM responsibilities for PC monitors and entry-level flat TVs to TPV but maintain its own, branded monitor headquarters in Taiwan. Philips' Chungli, Taiwan-based development center will go to TPV under the deal, according to the companies.

Provided all approvals are granted, the deal is expected to close in mid-2005. About 1,700 Phillips' employees worldwide will be affected by the deal, the companies said.

TPV designs and produces CRT and flat-panel PC displays, and it maintains the AOC and Envision brands. TPV executives said the deal will allow it to reach its goals of becoming the world's largest manufacturer of PC displays and entering the flat-screen TV manufacturing market. Philips' executives said the agreement will allow the company to follow through on its strategy of phasing out volume-driven businesses in favor of innovation on higher-end offerings.

In the United States, Phillips has struggled to build a presence in the commercial solution provider channel. Two years ago, the company launched a major U.S. channel initiative before deciding to restructure its organization. During that time, competitors such as ViewSonic, NEC-Mitsubishi, BenQ and Samsung have fortified their channel presence.