Hitachi, Sony and Toshiba form alliance to develop small-and-medium-sized display platforms
Hitachi, Sony and Toshiba have signed a memorandum of understanding which will see them integrate their small-and-medium-sized display businesses into a new company which will be operated by INCJ (NewCo).
The companies have announced this morning that they aim to sign definitive and legally binding agreements in the Autumn and that the integration process will be completed by Spring 2012.
The small-and-medium-sized display marketed is expected to grow due to the anticipation of strong demand for high resolution, high value-added products, particularly smartphones and tables.
The resulting company from the agreement, NewCo, will be tasked with utilising the best high value-added technologies to meet market demand and improve cost competitiveness to solidify its status as the world leader in the small-and-medium-sized display market.
This target will see NewCo invest in advanced research and development, with a focus on next generation technologies such as high resolution and thinner Organic light-emitting diode displays.
Kimikazu Noumi, President and CEO of INCJ, commented:“This is a landmark project for INCJ in our mission to make impactful, long-term and hands-on investments to grow next-generation businesses worldwide in the spirit of open innovation. The new company will become a leading small- and medium-sized display manufacturer, and by pooling compelling technological know-how, will be positioned to win in a competitive and lucrative global growth market that has a real impact on the quality of people’s everyday lives.”
“By integrating each partner company’s wealth of display expertise and know-how, I am confident the new company will become a driving force for technological innovation and new growth in the rapidly expanding small- and medium- sized display market. I believe it will perform a vital role in ensuring the stable supply of high quality display devices that further enhance the user experience in the growing field of smartphones and tablet computers,” said Howard Stringer, chairman, CEO and president, representative corporate executive officer of Sony Corporation.
“I have every confidence that this integration of three highly capable manufacturers of smalland medium-sized displays and their leading-edge technologies, along with the infusion of capital from INCJ, will create a highly competitive company. Toshiba will provide full support for the new company as it seeks to win leadership in the global market,” said Norio Sasaki, director, representative executive officer, president and chief executive officer of Toshiba Corporation.
"The new company, which integrates the three companies' technology, experience and resource, possess the necessary capabilities to offer high value-added products to meet customer needs, through the development of cutting-edge display technologies. I believe the new company will fully satisfy customers to succeed and to become a leading company in the global market.” concluded Hiroaki Nakanishi, president of Hitachi, Ltd.
Each of the three companies will own 10% of the shares, with INCJ, which was established in 2009 as a public-private partnerhip, holding 70%.