The Hindu : Business : Hitachi, Matsushita, Canon to form alliance

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Wednesday, Dec 26, 2007
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Hitachi, Matsushita, Canon to form alliance

Tie-up to promote liquid crystal display business

TOKYO: Japan’s Hitachi, Canon, and Matsushita Electric Industrial Co. on Tuesday said they agreed to form a comprehensive alliance to promote liquid crystal display (LCD) panel business.

Under the agreement, Canon and electronic products giant Matsushita will each acquire a 24.9 per cent equity stake of Hitachi Displays Ltd. by March 31, 2008, a joint press release said.

Hitachi will then hold 50.2 per cent of its subsidiary, which is engaged in small and medium-sized LCD panel-related business, when regulatory authorities approve the transfer. The business tie-up is aimed at reducing investment and development costs in LCD technologies, which has been widely used in televisions, mobile phones, digital cameras, game consoles and other digital products, analysts say.

Through the alliance, Hitachi seeks to accelerate the development of LCD technologies and enhance its competitiveness in LCD end- product manufacture. Meanwhile, leading imaging equipment maker Canon and Matsushita would be able to secure stable supply of LCDs.

The tie-up would also promote the development of organic light-emitting display (OLED) panels. According to the companies, Canon plans to take a majority holding in Hitachi Displays at the next stage of their alliance, while Matsushita eyes to take a controlling stake in IPS Alpha Technology Ltd., a manufacturer of large-size LCDs, jointly owned by Hitachi Displays, Matsushita and Toshiba Corp. — Xinhua

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