TOKYO -- Juki and Sony today announced the signing of a non-binding memorandum of intent to discuss the possible integration of their respective surface-mount technology equipment and related businesses. A new company is expected to be formed and a deal consummated by September.

Under the MOI, Sony EMCS, a wholly owned subsidiary of Sony, and Juki would integrate their SMT businesses under a newly established company. The new company would be funded by capital from both companies, with Juki holding more than two-thirds of the total shares.

In a press release, the companies said the integration is "intended to strengthen the competitiveness of each company’s respective SMT equipment and related businesses."

Juki and Sony hold two of the global larger market shares of SMT placement equipment, thanks in part to Juki's increased sales over the past five years and Sony's sales to Foxconn, one of its subcontractors.

Juki and Sony will continue further discussions with the aim of entering into a legally binding definitive agreement and proceeding with this business integration by the end of September, subject to any necessary legal approvals.

Read Mike Buetow's thoughts on the Juki-Sony announcement here.

Discuss the pending venture at Board Talk, the PCB industry bulletin board.