Japanese electronics makers announce alliance in flat panel displays

Japanese electronics makers Matsushita Electric Industrial Co, Hitachi Ltd, and Canon Inc announced an alliance in flat panel displays on Tuesday.

 

As part of the agreement Canon aims to accelerate ongoing development of organic light-emitting diode ("OLED") displays by teaming up with Hitachi, which also boasts advanced display technologies. Canon will continue to develop various types of displays in order to realize cross-media imaging - a sophisticated combination of imaging input and output equipment for data, still images and video that allows users to intuitively process images and information in any context in daily life or industry.

 

Matsushita in collaboration with the Hitachi Group aim to push ahead with construction of a next-generation plant at IPS Alpha (a joint venture held by companies including Matsushita and Canon). Although the plant will ensure a stable supply of liquid crystal displays it is also seen as a possible future base for production of OLED displays.

 

Matsushita is moving aggressively ahead with the enhancement of a vertically integrated business in the flat-panel TV sector. The company intends to continue increasing development and production capability in the flat-panel TV business. It believes that by meticulously responding to diversifying customer wants and needs, it can be the primary force driving the flat-panel TV market worldwide.

 

As the second stage, the three companies are planning ownership changes that would have Canon, a company with extensive know-how in small- and medium-sized displays from the user side, take a majority holding in Hitachi Displays, and Matsushita, a universally acknowledged leader in the TV sector, take a majority holding in IPS Alpha.

 

The main focus of the agreement aims at reinforcing and growing the liquid crystal display ("LCD") panel businesses and technologies. Under this alliance, Matsushita Electric Industrial Co, Hitachi Ltd, and Canon Inc will merge their strengths to accelerate the development of cutting-edge display technologies and expand their scope of application.

 

It has been agreed by the three companies that Canon and Matsushita will, by transfer of shares from Hitachi, each acquire 24.9% of the shares of Hitachi Displays Co., Ltd., by March 31, 2008, subject to approvals by regulatory authorities. As a result, Hitachi's stake in Hitachi Displays is to become 50.2%. The three companies will further discuss the details of the agreement.

 

Reference Canon

 

For more on OLED displays attend Printed Electronics Europe 2008 .