Japanese electronics giants Sony, Toshiba and Hitachi on Wednesday said they planned to merge their small and medium-sized display businesses for smartphones and tablet computers.
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| A sales assistant is seen at a Tokyo electronics shop. |
The companies said they planned to sign legally-binding agreements later this year and complete the integration by spring 2012 as they look to better position themselves in an intensely competitive market.
The tie-up company will be partly financed by the Innovation Network Corporation of Japan, a private-public investment fund established in 2009 to support next-generation businesses.
The government-affiliated body will invest around 200 billion yen ($2.6 billion) in the project and take a 70 percent stake, with Sony, Toshiba and Hitachi each holding 10 percent.
"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," said Sony CEO and President Howard Stringer.
The move comes as Japanese firms look to better compete against rivals from South Korea and Taiwan in the market for high resolution display technology in the booming markets for smartphones, tablet computers and other gadgets.
