Tech Shout!

Hitachi, Canon and Matsushita have announced that they have formed an alliance that aims to reinforce their LCD panel businesses and technologies in general. Under this tie-up, the three companies will combine their strengths to accelerate the development of cutting-edge display technologies and to expand their scope of application.

The alliance is expected to help Hitachi restructure its already-big portfolio of subsidiary companies. It is also hoped that Matsushita and Canon will benefit from this tie-up by raising their profile in the LCD sector.

According to Kazuo Furukawa, President of Hitachi, “Close cooperation among the three companies will enable stable supple of LCD panels. I am certain that the alliance will enhance our competitiveness.”

Further, Hitachi will reduce its interest in the wholly-owned subsidiary Hitachi Displays to slightly over 50%. Until now, this very unit has been showing loses.

The remaining shares will be divided between Matsushita and Canon by March 31, 2008. The statement also said that Canon could eventually take over a majority stake in Hitachi Display.

Hitachi who already manufacturers small and mid-sized LCD panels, will now be able to steadily supply its monitors to Canon for its digital cameras. Meanwhile, Canon also plans to further promote development of organic light-emitting diode panels, or OLEDs with Hitachi.

Matsushita has conformed that it will increase its involvement in IPS Apha Technology, which happens to be a joint venture between the three companies and Matsushita.

According to the statement, Matsushita plans to build a next-generation plant at IPS Alpha to ensure a stable supply of LCDs. The company also has plans to use this plant as a possible future base for production of OLED displays.