Hitachi, Toshiba and Matsushita Join for TV LCD Panels

Aug 31, 2004

Hitachi, Ltd., ("Hitachi"), Toshiba Corporation ("Toshiba") and Matsushita Electric Industrial Co., Ltd., ("Matsushita") today reached a basic agreement to jointly establish a company (the "JV") to manufacture and sell LCD panels for flat-panel TVs. Plans call for the joint venture to commence operations in January 2005.

The JV will build an amorphous TFT LCD panel production line at the Mobara facility of Hitachi Displays, Ltd. ("Hitachi Displays"), Hitachi's wholly owned subsidiary. Scheduled to begin mass production in the second quarter of the year ending March 31, 2007 (fiscal 2006), the JV will expand production capacity in stages, ultimately reaching the equivalent of 2.5 million 32-inch TV LCD panels a year by the second half of fiscal 2008. The expected capital investment for establishing this facility is 110.0 billion yen. While Hitachi Displays, Toshiba and Matsushita own majority shares, the JV plans to solicit investments from other companies involved in the manufacture of LCD panels, including device makers and material suppliers.

Sales are growing for flat-panel TVs, which combine a high-quality picture and large screen with a space-saving profile. Worldwide demand for LCD TVs was approximately 3.0 million units in 2003 and is estimated to expand fivefold by 2006. Furthermore, in order to meet increasing consumer demand for high-definition picture quality, TV manufacturers targeting the high-end market segment seek to differentiate their products not just with proprietary image processing technologies, but also by using LCD panels with outstanding picture quality. Reflecting this, mergers and acquisitions and strategic alliances in the LCD panel field, along with other developments in the industry, are resulting in fierce competition worldwide, fueling a growing need for TV manufacturers to ensure a stable supply of high-quality panels at low prices.

Against this backdrop, Hitachi, Toshiba and Matsushita have decided to establish a JV to manufacture LCD panels using Hitachi Displays' world-leading IPS(a) mode system technology. Boasting a wide viewing angle and outstanding color reproduction, these panels bring out the best in high-resolution content, such as digital TV broadcasts. The JV will provide the three companies with a reliable supply of LCD panels that are ideal for TVs and that will bolster the competitiveness of their respective LCD TV businesses in the high-end market. The JV, with Hitachi, Toshiba and Matsushita as its major customers, will operate a stable, capital-efficient production line, mass producing IPS-mode LCD panels, which provide outstanding picture quality at lower cost. Close collaboration with the JV is expected to achieve synergies in Hitachi, Toshiba and Matsushita's respective production of finished products, allowing them to achieve LCD TVs that are even more competitive in terms of performance and price.

(a) IPS Mode System Technology

In-Plane-Switching (IPS) mode system, is a type of TFT LCD display technology. IPS is distinguished by a wide 170-degree viewing angle, both horizontally and vertically, along with minimal gray-scale inversion and viewing-angle dependency, reproducing lifelike images, which is made possible because the liquid crystal molecules can rotate while remaining parallel to the substrate when a voltage is applied, yielding perfect orientation of the crystals. The advanced super(AS) -IPS mode system for use in televisions, large-screen monitors and other applications achieves an approximate 30% improvement in the aperture ratio over conventional IPS technology. Furthermore, AS-IPS realizes a higher level of brightness and reproduces colors more realistically thanks to high-purity color filters and other proprietary technologies.

Outline of the JV

Company name: To be announced

Management: To be announced

Projected capital: 60-70 billion yen

Ownership: Hitachi Displays 30-35 billion yen (50%);
Toshiba 15 billion yen (21-25%); Matsushita 15
billion yen (21-25%); other companies 0-5 billion
yen (0-8% projected)

Location: Mobara, Chiba Prefecture, Japan

Business: Manufacture, design, sales and related maintenance
and services of amorphous TFT LCD panels

Capital
investment: Approx. 110 billion yen

Products: Amorphous TFT LCD panels for TVs 23-inches and
above

Production
capacity: Equivalent of 2.5 million 32-inch units per year
(Maximum output scheduled to be realized in second
half of fiscal 2008)

Explore further: Sony hacking fallout puts all companies on alert

add to favorites email to friend print save as pdf

Related Stories

China fines LG, Samsung in flat panel price case

Jan 04, 2013

China fined South Korean and Taiwanese makers of LCD display screens $56 million on Friday for price-fixing, joining the United States and Europe in a crackdown on the industry.

Samsung, Sharp in LCD price-fixing settlement

Dec 27, 2011

South Korea's Samsung, Japan's Sharp and five other Asian firms have agreed to a $553 million settlement for illegally fixing liquid crystal display prices, New York state's attorney general said Tuesday.

US agency examines Sony patent infringement claim

Apr 16, 2010

A US trade agency has launched a probe into Sony Corp's claims that several companies, including two major computer monitor makers in Hong Kong and Taiwan, infringed on its patents for display devices.

EU antitrust regulators charge LCD panel makers

Jul 13, 2009

(AP) -- European Union antitrust regulators have charged Royal Philips Electronics NV and LG Display with fixing the price of liquid crystal display monitors, Philips said Monday.

CES 2009: Some Tweaks, Freaks and Slimming New Products

Jan 08, 2009

(PhysOrg.com) -- The world-wide economic indigestion has slightly impacted CES 2009 newcomer company demonstrations and gawker attendance. So, far Formula One Sponsors, (the big Kahunas) like Microsoft, ASUS, ...

Recommended for you

Sony hacking fallout puts all companies on alert

9 hours ago

Companies across the globe are on high alert to tighten up network security to avoid being the next company brought to its knees by hackers like those that executed the dramatic cyberattack against Sony Pictures ...

Ear-check via phone can ease path to diagnosis

10 hours ago

Ear infections are common in babies and young children. That it is a frequent reason for young children's visit to doctors comes as no consolation for the parents of babies tugging at their ears and crying ...

Timeline of the Sony Pictures Entertainment hack

11 hours ago

It's been four weeks since hackers calling themselves Guardians of Peace began their cyberterrorism campaign against Sony Pictures Entertainment. In that time thousands of executive emails and other documents ...

Two more former Sony workers sue over data breach

11 hours ago

Two more former employees of Sony Pictures Entertainment are suing the company over the massive data breach in which their personal and financial information was stolen and posted online.

Files of more than 40,000 federal workers breached (Update)

11 hours ago

The computer files of more than 40,000 federal workers may have been compromised by a cyberattack at federal contractor KeyPoint Government Solutions, the second breach this year at a major firm handling national security ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.