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This correspondence studies the problem of observer-based Hinfin control for time-delay Takagi-Sugeno (T-S) fuzzy systems. It provides a delay-dependent linear matrix inequality (LMI)-based method for the control design. It is known that the key important problem in the literature, even for delay-independent case, lies in the difficulty of decoupling matrix variables in corresponding matrix inequalities. This correspondence suggests a decoupling technique for solving matrix inequalities with coupled variables, and provides an LMI-based algorithm by adopting the idea of the cone complementarity problem. The derivation relies on the appropriate choice of Lyaponuv-Krasovskii functionals which incorporate the intersections among local systems. Illustrative examples are given to show the effectiveness of the present delay-dependent result.