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HOME OFFICE / MONITORS AND SCREENS

Sony, Toshiba, Hitachi Merge LCDs To Fend Off Korean Rivals

By Matthew Lentini | Tuesday | 15/11/2011

Japanese manufacturers Sony Corp, Toshiba Corp and Hitachi Ltd will merge their small LCD panel businesses together under an entirely new entity known as Japan Display.


The Japanese government is giving its manufacturers a leg up in the display market with a 200billion yen injection that will see it take a 70 percent cut in the firm.

The new firm will see the three companies hold a 10 percent stake each in what will be the largest small panel maker for smartphones and tablets as they struggle to fend off South Korean competition from the likes of Samsung and LG.

Japan Display, which is planned to be listed by March 2016 according to Reuters, is being funded by the 90 percent government-owned Innovation Network Corp of Japan (INCJ) which is injecting 200billion yen into the business.

The INCJ fund was originally conceived in 2009 to promote manufacturer innovation in Japan using tax dollars, and this new investment is its biggest yet.

Plans are already in motion to buy an LCD panel plant from Panasonic Corp.

The merger is set to be completed in 2012, where the companies will hope to see a boost in collective revenues which have been dwindling down to losses in the small-medium-sized panel market.

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