In a press release issued by both TCL and Sony today, more details have been released about the upcoming joint venture between the two companies. The plan, which we originally wrote about earlier this year, has graduated from a memorandum of understanding to a “Definitive Agreement,” which is now legally binding. And we’ve got some additional details on the deal, thanks to a Sony insider.
The new company will be called BRAVIA, Inc. BRAVIA is currently one of Sony’s sub-brands, which the company started using in 2005, mainly for their high performance televisions. BRAVIA, which is actually an acronym for “Best Resolution Audio Video Interface Architecture,” was expanded in 2024 to include the company’s audio and home theater gear such as speakers, soundbars and projectors.
The new company will assume all product development and design, manufacturing, sales and logistics, as well as customer service for all associated products. Products include current Sony-branded consumer televisions, projectors, soundbars, speakers, B2B TVs, B2B LED displays and A/V receivers. Future products will retain both the Sony and BRAVIA brand names.
The new company will be jointly owned by TCL (51%) and Sony (49%) and will be headquartered in Sony’s Osaki office in Tokyo, Japan. Sony’s current Vice Chairman in charge of special assignments, Kazuo Kii, will lead the new company as Representative Director, Chairperson and CEO of BRAVIA Inc., effective April 1, 2027. In addition to Kazuo Kii, four additional board members are also named, split evenly between current members of both Sony Corporation and TCL.
The companies are hoping to leverage their complementary strengths: Sony’s long-established reputation for high-quality picture and sound technology, premium brand value, and operational expertise, alongside TCL’s advanced display technology, global scale, manufacturing footprint, end-to-end cost efficiency, and vertically integrated supply-chain capabilities.
In 2026, Sony’s current manufacturing footprint is already globally distributed, but Sony’s actual ownership of the manufacturing process is highly diluted in some areas. For example, Sony’s North American TV manufacturing plant in Tijuana, MX is currently 90% owned by FoxConn and only 10% owned by Sony. This new venture will actually give Sony more control and oversight over the entire manufacturing process from initial design to final assembly. And it should do so at a lower overall cost thanks to economies of scale realized from TCL’s global manufacturing infrastructure.
Some of Sony’s current manufacturing facilities, such as Sony EMCS (Malaysia) Sdn. Bhd.(“SOEM”) plant, will be transferred to TCL ownership outright as part of the deal. Discussions are ongoing about some additional facilities, such as Shanghai Suoguang Visual Products Co., Ltd. (“SSVE”), a subsidiary of Sony China responsible for manufacturing some of Sony’s home entertainment products.
The sum of the enterprise value of the businesses and assets to be transferred to the New Company and the enterprise value of SOEM (“Enterprise Value”) is estimated at approximately 102.8 billion yen ($644 Million USD) as of March, 2026. TCL is said to be paying approximately 75.3 Billion Yen ($473 Million USD) to complete the deal.
BRAVIA Inc. is expected to officially begin its operations in April, 2027 and it will operate under a framework that “protects each company’s intellectual property and competitiveness.” In other words, TCL will likely continue to offer products under its own brand, with its own in-house engineering and product development, while Sony’s engineering and development team will focus on the Sony/BRAVIA branded products. Also, Sony’s other lines of business (e.g. gaming, movies, music) will remain independent.
More details on the joint venture can be found in Sony’s official press release.
The Bottom Line
Like many established tech companies, Sony has been struggling in some areas of its business, including TVs and audio and video gear. While the Sony brand remains at or near the top in market perception for quality, Sony TVs currently only represent about 2% of global market share in actual unit sales (though its higher price point means Sony TVs account for over 5% of market share by revenue). Meanwhile TCL has been gaining market share year over year, and is currently ranked #2 globally in TV unit shipments with roughly 16% of the global TV market in 2026.
By leveraging TCL’s vertical integration and global manufacturing and distribution footprint, we foresee a significant surge in Sony’s global market share, perhaps accompanied by a lower average cost of entry to the Sony brand. Will this lead to a “cheapening” of the Sony brand overall? If executed properly, it doesn’t have to. But only time will tell.
Got an opinion about the TCL/Sony joint venture? Let us know in the comments.
Related Reading:
Sony is Handing Majority Control of its TV Business to TCL. Is That Good or Bad?
Robert Silva
March 31, 2026 at 1:18 pm
This is definitely going to shake things up in the TV landscape. We might actually see Sony TVs in the Sony or TCL booth at the next CES.
Ian White
March 31, 2026 at 1:24 pm
Robert,
If they can offer the same level of image, processing, and build quality for less money — this could be the smartest thing Sony ever did. If the TVs don’t deliver, it will put them at the bottom of the high-end TV pile.
IW
Randy Andy
March 31, 2026 at 2:41 pm
Look at you guys. Reporting from Tokyo. On real news. Versus posting paid for videos that are nothing more than commercials by SoundStage.
Any sense on the pricing? Makes me nervous to see Sony have someone else make their best TVs.
Ian White
March 31, 2026 at 6:21 pm
And more to come. Chris is headed back to Japan after AXPONA.
I think TCL will surprise people and do a very good job.
IW
Chris Boylan
March 31, 2026 at 7:16 pm
TCL is making damn good TVs already, as we have seen in the QM8K that got our Editor’s Choice pick last year. There’s no reason to think they will make TVs with Sony/BRAVIA branding any less capable than they are currently. The only question is whether Sony will stick with OLED in 2027 and beyond. We expect to see Sony’s entry into the RGB backlit LCD TV market later this year (stay tuned). As to whether that can match OLED in black levels and color saturation, we shall see. If OLED still provides the best raw materials for Sony TVs in 2027, I expect we’ll continue to see Sony/BRAVIA-branded OLED TVs moving forward.