LG Display and iRiver are joining forces in a 5 million dollar joint venture to bring out an OEM e-book reader. This agreement, in which LG has a 51% stake under the name L&I Electronic Technology Limited and iRiver has a 49% stake, will establish a new company which will develop and produce an OEM e-reader and sell it to electronics companies who will do their own branding.
"The joint venture is significant in that iRiver has now secured the foundation to produce more stable and competitive products," said Mr. Jae Woo Lee, CEO of iRiver. "Once our mutual technical and manufacturing abilities start producing synergies, I am confident that our joint venture will grow into a leading global producer of e-books."
While there are no price points or other details on the new devices, the new company is hoping to be producing one million units by 2011. Production is slated to commence in September at iRiver's e-book plant in Dongguan.