FET pulls out of Pioneer plasma deal

Field Emission Technologies Inc., an affiliate of Sony Corp., has given up on buying Pioneer Corp.'s plasma panel plant by March as planned, sources said Thursday.

The company was apparently unable to raise the necessary funding for the purchase amid the ongoing financial crisis.

FET and Pioneer agreed on the deal for the Kagoshima Prefecture plant in September after Pioneer decided to pull out of the plasma panel business. FET planned to make its new flat-panel displays for use in broadcasting and medical services there from late 2009.

A field emission display, or FED, is a new type flat screen that produces quality pictures using less power, according to the company.

Field Emission had intended to take on about 180 Pioneer employees through the deal but now Pioneer will try and find jobs for those workers, according to the sources.

Field Emission was established in 2006 by Technology Carve-Out Investment LLP and Sony.