Hitachi, Canon and Matsushita to Partner on LCD Panel Business

Hitachi, Ltd., Canon, Inc. and Matsushita Electric Industrial Ltd. Have signed a basic agreement on a comprehensive alliance aimed at reinforcing and growing their liquid-crystal-display (LCD) panel businesses and technologies. Under this alliance, the three companies will merge their strengths to accelerate the development of cutting-edge display technologies and expand their scope of application. (Reported by the Society for Information Display)

The announcement comes days after Sharp Corp. and Toshiba Corp.announced an agreement to work together on LCDs.

According to a joint press release issued by the three companies, Canon and Matsushita will each acquire 24.9% of the shares of Hitachi Display Co., Ltd., a wholly owned subsidiary of Hitachi engaged in small- and medium-sized LCD panel-related businesses, by March 31, 2008, subject to approvals by regulatory authorities. As a result, Hitachis stake in Hitachi Displays is to become 50.2%.

"Intensifying competition has made it imperative for LCD panel manufacturers to ensure a stable supply of high-quality LCD panels at low prices," the press release stated. "This will require ongoing upfront investment and development of cutting-edge technologies."