Sony, Toshiba, Hitachi to Merge LCD Businesses with Funds from Japanese Gov

Sony logoOf all the segments of the tech industry one of the most volatile is the display segment. The screens made by display manufacturers are crucial parts of devices like notebooks and smartphones, but the panels are also directly tied to the fate of the gadget makers. When sales drop for the gadget companies, demand decreases and could leave the display makers with a huge stockpile of screens they can't sell.

Some of the largest firms in the display making market have been looking for ways to shore up their operations and make operations more stable and some even want to distance themselves from the display market.

In Japan Sony, Toshiba, and Hitachi have all announced that they will be merging their LCD businesses. The deal will be funded in part with $2.6 billion in government-backed finds. The move is an attempt to make the Japanese businesses stronger with increased competition from rivals in Taiwan and South Korea.

The money from the Japanese government is coming from the 90% government-owned fund that was set up to drive Japanese innovation years ago. The investment of the $2.6 billion or 200 billion yen will give the Innovation Network Corp of Japan (INCJ) a 70% stake of the display company and leave each of the three other firms with 10% of the company.

The parties involved in the deal hope to complete the merger by the spring of 2012 and plan to call the merged operation Japan Display. The merged entity should listed by March 2016 and in that time the companies plan to increase revenue to 750 billion yen from 570 billion by the year ending March 2012.

Together the merged company has 21.5% of the display market for small and medium panels. All three of the companies were expected to move from the red into the black this year. One South Korean government official stated, "The decision reflects a growing sense of crisis in Japan in light of its falling market share in the global chip and display markets." Some things remain unclear right now, one of which is how the companies will merge when they use different display technology.

Source: DailyTech

Tags: Hitachi, Sony, Toshiba

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
The NVIDIA GeForce GTX 1180 will be Turing-based with a 12nm FinFET die shrink
 
This only works on posts made by profiles that are public
 
 
The device will be standalone and based on a Qualcomm chipset
 
Apple plans on offering a cheaper smart speaker that will be priced at $199
 
Chrome will adopt a new approach to indicating site security
 
Data shows they are leading smartphone sale worldwide
 
Is this an error or it is really happening?
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
  12345
6789101112
13141516171819
20212223242526
2728293031  




Poll

Do you use microSD card with your phone?
or leave your own version in comments (10)