Seiko, Epson and Sony have begun discussions about an alliance in the field of small- and medium-sized liquid-crystal displays (LCDs), including the transfer of a part of business assets of Epson to Sony. The companies plan to enter into a legally binding definitive agreement by the end of June 2009.

To date, Epson Imaging, a subsidiary of Epson, has implemented a series of restructuring measures in its small- and medium-sized LCD business. At the same time, it has endeavored to shift its product portfolio, developing original high-definition and ultra-wide viewing angle technologies based on its amorphous silicon TFT and low-temperature polysilicon (LTPS) TFT technologies. An alliance with Sony would enable Epson Imagings LCD technology and amorphous silicon TFT production capability to be more fully utilized.

In its small- and medium-sized LCD business, Sony is focusing on LTPS-TFT LCD, and in order to accelerate the development and commercialization process, it has also decided to consolidate its resources within its subsidiary, Sony Mobile Display Corporation, resulting in a unified operation containing development, design and production. Through the contemplated alliance, Sony aims to increase the competitiveness of its small- and medium-sized LCD business by incorporating Epsons wide range of technologies, in particular Epson Imagings amorphous silicon TFT technology, and LCD product designs and production capabilities.