TCL and Sony have signed a memorandum of understanding to form a joint venture that will take control of Sony’s TV and home-audio business, with TCL holding 51% and Sony 49%. The deal, announced on January 20, 2026, envisages a formal agreement before the end of March 2026 and the new company beginning operations in April 2027, while continuing to sell products under the Sony and BRAVIA brands.
The move hands operational control of one of the world’s best-known premium TV names to a Chinese manufacturer and signals a broader rearrangement of the global television industry. For TCL it is a strategic prize: immediate access to Sony’s premium technologies, brand cachet and lead in picture- and sound‑processing know‑how. For Sony it is a retreat from capital‑intensive hardware manufacturing toward higher‑margin areas such as streaming, gaming and content ecosystems.
The deal reflects two long-running structural trends in the TV market. Global shipments have plateaued and are increasingly driven by larger sizes and high‑end specifications rather than unit growth. Since 2020, industry expansion has depended largely on price and feature upgrades — Mini LED, OLED and advanced image‑processing chips — rather than large volume increases.
Chinese firms have been the main beneficiaries of that shift. Over the past decade China built out a dominant manufacturing base for panels, components and assembly, and companies such as TCL, Hisense and BOE moved aggressively up the value chain. Market projections cited in the deal’s coverage put global TV shipments at about 220.6 million units in 2025, with Samsung first at roughly 35.3 million units (16% share) and TCL second at 30.4 million units (13.8%). Sony’s shipments were estimated at about 4.1 million units in 2025.
Industry analysts say the combination of Sony’s premium branding and TCL’s scale could be transformative. If the joint venture is established and TCL secures controlling equity, group market shares could rise materially: one consultancy estimates a combined TCL‑Sony share of about 16.7% by 2027, which would challenge — and potentially overtake — Samsung’s historic lead. The transaction would also accelerate vertical integration: TCL’s panel arm, CSOT, already supplies Sony and could consolidate panel flows toward the new group, shortening supply chains and reducing costs.
The handover also marks a symbolic end to the era when Japanese firms dominated global television. Sony, Sharp, Panasonic and Toshiba once set technical standards and commanded premium margins; the transition from CRT to LCD, and later to advanced panel technologies, favoured manufacturers willing to invest aggressively in panel fabs and supply-chain scale. Korean firms briefly led the second wave, but the current ascendancy of Chinese manufacturers completes a multi‑decade realignment.
Risks remain. Preserving Sony’s premium image while moving manufacturing and supply closer to TCL will be delicate. Consumers pay a premium for perceived quality and design pedigree; any missteps in product positioning, software experience or after‑sales service could erode brand equity. Regulatory scrutiny in some jurisdictions and potential pushback from rival suppliers or retail partners are other possible complications.
If it goes through, the deal will be more than an ownership change: it will be a test of whether Chinese consumer electronics giants can assimilate premium Western or Japanese brands without diluting their cachet, and whether legacy global competitors adapt by doubling down on software, services and content. Either outcome will reshape competition for the next decade of living‑room hardware and media ecosystems.