Sony and LG restart supply chain deal History has a tendency to repeat itself, and that applies to supply chain agreements as well: Recently, Sony Corp. and LG Display Co. agreed to a deal in which LG resumed supply of liquid-crystal displays to Sony - after six years of halting shipments.

Executives from the companies affirmed that the shipments started again in December of last year after negotiations between the two Asian electronics companies. Claire Ohm, a spokeswoman for LG, says that the panels will be used to construct televisions with displays that measure 20 inches to 30 inches.

Currently, Sony is the world's third-largest television maker, according to Bloomberg, but the increased supply could help the company ratchet up its manufacturing capacity and augment its market share. In the past decade, television sales have been consistently strong, and while sales are showing signs of slowing, Sony hopes to gain in a foothold in the profitable sector. Song Eun Jeong, an analyst at E*Trade Securities Co., affirmed that the supply agreement is "positive for LG as a top-tier company came back as a customer."

Sony has had supply chain agreements with various other electronics companies in the past, including in 2004 when Samsung Electronics Co. entered into a join venture with them to produce the panels.
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