[Viewpoint] Sony is to form a joint venture in the audio and video market with China's TCL

Japanese giant Sony and Chinese giant TCL Electronics Holdings Limited have signed a memorandum of understanding (MoU) to explore the creation of a joint venture in the home entertainment market, covering both video and audio products.

Under the proposed structure, TCL would hold a 51% stake in the new venture, while Sony would retain 49%. The joint venture would take over Sony's home entertainment business and operate globally, overseeing product development, design, manufacturing, sales, logistics, and customer service for TVs and home audio devices.

The two companies aim to finalize binding agreements within about a month, by the end of March 2026. Pending definitive agreements, regulatory approvals, and other customary conditions, the new company is expected to begin operations in April 2027.

According to a recent press release, the joint venture would combine Sony's video and audio technologies, brand portfolio, and distribution expertise with TCL's technological capabilities, manufacturing scale, and cost efficiency. Products would continue to be marketed under the Sony brand, including the BRAVIA line of televisions and home audio equipment.

Both companies note that the global market for large‑screen TVs continues to grow, driven by the expansion of streaming platforms, advances in AI, and rising demand for higher resolution and larger displays. The proposed joint venture aims to capitalize on these trends and pursue further growth in the home entertainment market.

Comment from Kimio Maki, Representative Director, President and CEO, Sony Corporation: “We are pleased to have reached this agreement with TCL for a strategic partnership. By combining both companies' expertise, we aim to create new customer value in the home entertainment field, delivering even more captivating audio and visual experiences to customers worldwide.”

Comment from DU Juan, Chairperson, TCL Electronics Holdings Limited: “We believe that this strategic partnership with Sony represents a unique opportunity to combine the strengths of Sony and TCL, creating a powerful platform for sustainable growth. Through strategic business complementarity, technology and know-how sharing, and operational integration, we expect to elevate our brand value, achieve greater scale, and optimize the supply chain in order to deliver superior products and services to our customers.”

What can we infer from this agreement? Many major electronics brands are increasingly relying on large Chinese companies (just think of what happened to MBL a few months ago), which clearly have both the capital and the technical expertise to streamline operations. Sony's product line-up is unlikely to change significantly, at least not in the short term.

What does concern me slightly is TCL's 51% stake compared to Sony's 49% in the new joint venture. It's concerning because the Chinese business model still differs considerably from that of the rest of the world, particularly in terms of employee working conditions and marketing practices. Consider BYD's recent - and subsequently withdrawn - advertising campaign offering Stellantis customers, frustrated by issues with the PureTech engine, scrappage incentives to switch to BYD vehicles. The campaign, called “Operation Purification”, launched earlier this year, offered discounts of up to €10,000 on Chinese models for scrapping cars equipped with Stellantis' 1.2 PureTech engines (notorious for their defective oil-wet belt). The initiative was blocked by the IAP for being deemed derogatory.

Another point worth noting is that, given how frequently these situations now occur, even the most uncompromising “Made in China” sceptics may need to accept reality. The Asian giant is steadily taking over every market - and not only that, it now has the know‑how to perform just as well, if not better. Rereading these lines in ten years may almost feel ironic.

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February 2026 Editorial

Sony and TCL joining forces