Display - Matsushita, Hitachi, and Toshiba to Jointly Produce LCD Panels
September 01, 2004
Matsushita Electric Industrial, Hitachi, and Toshiba announced that they will jointly invest 110 billion Yen to produce large size LCD panels for TVs. The alliance's new plant, set to produce 32" and 26" LCD panels, is expected to ramp up mass production in the second quarter of 2006. A full capacity of 2.5 million units is forecasted for the 32" line by the first quarter of 2009.
With capital of 60 billion to 70 billion Yen, the merger will be based in a Hitachi LCD subsidiary in the suburbs of Tokyo, and is scheduled to begin operation in January 2005. The Hitachi LCD subsidiary will provide 50% of total investments, while Toshiba and Matsushita will contribute 25% and 21% respectively. Another five billion Yen will be raised from other makers.
While aiming to leverage the booming demand for LCD panels, these three makers looked to heighten vertical integration within the industry to fend off growing competition. They also called on other industry players such as electronics makers JVC and Mitsubishi Electric, and equipment makers such as Canon to join their efforts.
Other rivals have also been aggressively engaged in production of large LCD panels. Sony and Samsung agreed in 2003 to set up a joint venture for LCD panel production. Sharp also implemented a system of integrated manufacturing early this year and is now producing LCD panels and assembling its TV sets.