subject: Japanese Integration Panel Business Attempts To Change The Global Competitive Landscape [print this page] Japan's Toshiba, Sony, and Hitachi recently announced that they will merge the business of small and medium LCD panels. The news leads to great attention of the global flat panel display industry. Experts said the inter-enterprise integration of Japan's panel business will give rise to the world's largest supplier of small and medium-size LCD panel, which also will provides a competitive pressure on the panel enterprises of South Korea and China's Taiwan.
On August 31, Toshiba, Sony and Hitachi announced the merger of small and medium sized LCD panel business. The three companies will set up a new company called JapanDisplay. The business combination will be completed in the spring of 2012. One semi-official Japanese investment fund industry and innovation agency will inject 200 billion yen to hold 70% stake of JapanDis-play. Toshiba, Hitachi and Sony each accounted for 10% stake.
The statistics show that, in 2010, the production of Toshiba, Hitachi and Sony's small and medium sized LCD panel accounted for 9%, 6.3% and 6% of the global market share respectively. It means that after the set up of the joint venture company, its output will account for 21.3% of the global production, more than Japan's Sharp's market share of 14.8%. It will become the world's largest supplier of small and medium LCD panels.
For the integration of the three companies, the analyst said the reason why Japan's three electronic integrated small and medium-size panels business is mainly because they see the market opportunities brought by the smart phones and tablet PCs and other products. The global small and medium-sized technology is moving toward the high-resolution panely direction. The technology of the three Japanese companies can be applied to these products.
"In the field of LCD panels, the three companies can be said to have plenty of a martial arts. They all have their own good technology, but there is no way to go down to the front, because they do not have potential investments." In this case, led by the Japanese government, the three companies will contribute to the integration of the corresponding operations into a new business.
The analysts pointed out that the Hitachi is good at flat conversion (LPS). Toshiba specializes in low-temperature polysilicon (LTPS). Sony specializes in organic excitation display (OLED). The three advanced technology are hot products that the screen of smart phones and tablet PCs require. Also, the integration of the three companies have an important background.
by: Amanda Xia
welcome to Insurances.net (https://www.insurances.net)
