Sony, Hitachi, Toshiba to consolidate display businesses
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Sony, Hitachi and Toshiba have signed a memorandum of understanding to merge their small and medium size display businesses into a joint venture.
The new entity, to be known as Japan Display K.K, is being supported with $2.6billion from government backed investment company Innovation Network Corporation of Japan.
Analysts predict is will hold at least 20% of the fast growing global market for panels used in smartphones and other consumer devices.
"By integrating each partner company's wealth of display expertise and know how, I am confident the new company will become a driving force for technological innovation and new growth in the rapidly expanding small and medium sized display market," said Sony ceo Howard Stringer. "I believe it will perform a vital role in ensuring the stable supply of high quality display devices that further enhance the user experience in the growing field of smartphones and tablet computers."
The merger, which is expected to be completed by Q2 2012, comes as Japan tries to protect its companies from the rising Yen and competition from other Asian players.
Japan Display K.K will invest in advanced R&D and focus on the development of next generation technologies such as higher resolution and thinner organic oled displays.
