Sony, Hitachi And Toshiba Make Their LCD Business Merger Official

Dr. Serkan Toto currently works as the first and only Asia-based writer for the TechCrunch network, mainly covering Japan-related technology and web companies for TechCrunch, CrunchGear and MobileCrunch. Serkan also works full-time as an independent web and mobile industry consultant with a focus on the Japanese market. He is sept-lingual, holds an MBA and is a PhD in economics. Serkan... ? Learn More

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.

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Sony, Hitachi And Toshiba To Merge Operations For Small And Mid-Sized LCDs

Dr. Serkan Toto currently works as the first and only Asia-based writer for the TechCrunch network, mainly covering Japan-related technology and web companies for TechCrunch, CrunchGear and MobileCrunch. Serkan also works full-time as an independent web and mobile industry consultant with a focus on the Japanese market. He is sept-lingual, holds an MBA and is a PhD in economics. Serkan... ? Learn More

Quite big news from Sony, Hitachi, and Toshiba today: according to Japanese newspaper Yomiuri Shimbun [JP], the three companies today decided to merge their LCD businesses, at least for smaller and mid-sized screens used in smartphones, handheld gaming devices and tablets.

If the report is to be believed, a joint venture will be set up by the end of the year. What’s interesting is that the so-called Innovation Network Corporation of Japan, a semi-public organization, will control a whopping 70% of the newly formed company. The organization is ready to invest a total of US$2.6 billion (and fend off competition from South Korea, Taiwan and other places).

Sony, Hitachi and Toshiba will hold 10% each of the yet to be named joint venture. It will control over 20% of the world’s market for smaller and mid-sized LCDs, making it the biggest company globally in this field.

We covered the first rumors about the merger back in June.

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