Sony, Hitachi And Toshiba Make Their LCD Business Merger Official

Yesterday, we reported about Sony, Hitachi and Toshiba planning to establish a joint venture for small and mid-size LCD panels in Japan. And today, the three companies, plus major shareholder Innovation Network Corporation of Japan, made the plan official.

As reported, the semi-public organization will control 70% of the venture (to be set up by the end of the year), with the other partners holding a 10% stake each. Tentatively named “Japan Display”, the venture will launch with a cool US$2.6 billion investment and instantly control 21.5% of the world market for small and medium-sized LCDs.

According to Japanese business daily The Nikkei, Sharp will be the second-largest maker of this type of displays with a 20% market share. The same newspaper says the four companies involved in Japan Display are currently trying to figure out where to set up plants in order to start production as quickly as possible.

Apart from LCDs, Japan Display will also invest in OLED-related research and development.