ID :
204639
Wed, 08/31/2011 - 19:04
Auther :
Shortlink :
https://oananews.org//node/204639
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Sony, Toshiba, Hitachi agree on small LCD business merger+
TOKYO, Aug. 31 Kyodo -
Sony Corp., Toshiba Corp. and Hitachi Ltd. have agreed to integrate their businesses on small and medium-sized liquid crystal display panels for smartphones and tablet computers, and aim to complete the merger by next spring, the companies said Wednesday.
Backed by a 200 billion yen investment from a government-backed fund, the major electronics makers aim to boost their competitiveness amid growing demand for LCD panels, in the face of intense competition from South Korean and Taiwanese manufacturers.
The three companies will transfer their small and mid-sized LCD manufacturing operations to the newly created company, Japan Display K.K., which will be the world leader in the industry with over a 20 percent global market share.
In the competitive LCD panel market, South Korean and Taiwanese companies enjoy an advantage over Japanese firms in large-sized panels for televisions, pushing down Japan's market share to about 10 percent. But Japanese companies hold around a 40 percent share in the small and midsize LCD display market.
The government-backed investment fund, the Innovation Network Corporation of Japan, will hold a 70 percent share with voting rights in the new company, while Hitachi, Sony and Toshiba are expected to hold 10 percent of the shares each, they said.
All the issued shares of the three companies' subsidiaries for the business are to be transferred to the new company.
The 200 billion yen to be invested by the INCJ through a third-party allotment of new shares will be used to build new production lines in order to meet demand for high value-added products.
Additional investments are expected to be made to develop next-generation technologies such as organic light-emitting diode displays, they said.
''The smartphone and tablet markets are excellent markets where Japanese manufacturers can capitalize on their strengths,'' INCJ President Kimikazu Nomi told a press conference in Tokyo. ''The Japanese manufacturers are currently facing a chance in a million.''
Nomi said the new company will aim to list shares on a stock exchange by March 2016.
The new company aims to chalk up sales of 750 billion yen in the year ending March 2016, up from the three companies' combined projected sales of 570 billion yen for the current business year through March 2012.
The president of Japan Display will be newly hired and the company will aim to materialize a strategy regarding investments, research and development and promotion of efficient production under the new management.
According to the INCJ, the global market for small and midsize panels including LCDs and electroluminescent displays is expected to grow 21 percent annually, with sales estimated to reach 4.2 trillion yen in 2015.
In 2010, Toshiba held a share of 9.2 percent in the global market for small and midsize LCD panels in terms of shipment value, while Hitachi had 6.3 percent and Sony 6.0 percent, according to research firm DisplaySearch.
Sony Corp., Toshiba Corp. and Hitachi Ltd. have agreed to integrate their businesses on small and medium-sized liquid crystal display panels for smartphones and tablet computers, and aim to complete the merger by next spring, the companies said Wednesday.
Backed by a 200 billion yen investment from a government-backed fund, the major electronics makers aim to boost their competitiveness amid growing demand for LCD panels, in the face of intense competition from South Korean and Taiwanese manufacturers.
The three companies will transfer their small and mid-sized LCD manufacturing operations to the newly created company, Japan Display K.K., which will be the world leader in the industry with over a 20 percent global market share.
In the competitive LCD panel market, South Korean and Taiwanese companies enjoy an advantage over Japanese firms in large-sized panels for televisions, pushing down Japan's market share to about 10 percent. But Japanese companies hold around a 40 percent share in the small and midsize LCD display market.
The government-backed investment fund, the Innovation Network Corporation of Japan, will hold a 70 percent share with voting rights in the new company, while Hitachi, Sony and Toshiba are expected to hold 10 percent of the shares each, they said.
All the issued shares of the three companies' subsidiaries for the business are to be transferred to the new company.
The 200 billion yen to be invested by the INCJ through a third-party allotment of new shares will be used to build new production lines in order to meet demand for high value-added products.
Additional investments are expected to be made to develop next-generation technologies such as organic light-emitting diode displays, they said.
''The smartphone and tablet markets are excellent markets where Japanese manufacturers can capitalize on their strengths,'' INCJ President Kimikazu Nomi told a press conference in Tokyo. ''The Japanese manufacturers are currently facing a chance in a million.''
Nomi said the new company will aim to list shares on a stock exchange by March 2016.
The new company aims to chalk up sales of 750 billion yen in the year ending March 2016, up from the three companies' combined projected sales of 570 billion yen for the current business year through March 2012.
The president of Japan Display will be newly hired and the company will aim to materialize a strategy regarding investments, research and development and promotion of efficient production under the new management.
According to the INCJ, the global market for small and midsize panels including LCDs and electroluminescent displays is expected to grow 21 percent annually, with sales estimated to reach 4.2 trillion yen in 2015.
In 2010, Toshiba held a share of 9.2 percent in the global market for small and midsize LCD panels in terms of shipment value, while Hitachi had 6.3 percent and Sony 6.0 percent, according to research firm DisplaySearch.
