Sanyo Electric and Quanta Computer agreed on an alliance in the TV business, albeit a much narrower one than they had initially hoped for, a Reuters report said.
The Reuters report said consumer electronics maker Sanyo's and Taiwan's Quanta Computer' cooperation would include unified platforms and joint procurement of parts and materials.
As part of the alliance, Quanta Computer will take a 19 % stake in a new company established through a spin-off of Sanyo's TV development and procurement operations, the Reuters report said.
The new entity, to be capitalized at 100 million yen ($865,900), will be founded on October 2.
In March, Sanyo and Quanta, the world's top contract laptop PC maker with display unit Quanta Display, agreed in principle to set up a joint venture to make and sell flat TVs.
But in April, Taiwan's AU Optronics agreed to buy Quanta Display, casting a shadow over the viability of the proposed venture, the report said.
A Sanyo spokesman said there are some issues that need to be ironed out before Sanyo and Quanta Computer reach an agreement on a full-blown integration of their flat TV operations -- though the sale of Quanta Display to AU is not one of them, he said.
Osaka-based Sanyo is a major manufacturer of cathode-ray tube TVs, but it has a limited presence in the fast-growing flat TV market, which weighs on the growth potential of its TV operations.