Sony and Toshiba, Hitachi to integrate display business such as smartphone, organic EL development as well

Toshiba which supplies "Retina Display" of iPhone 4, Sony which handles "Reality Display" installed in the Xperia series, and Toshiba, Hitachi will integrate small and medium type liquid crystal display business for tablet terminals and smartphones Officially announced.

Sony Japan | Conclusion of Basic Agreement on Small and Medium Display Business Integration


According to a press release announced by the Industry Innovation Organization (INCJ), Sony, Toshiba and Hitachi, under the new company "Japan Display (planned)" established and operated around INCJ, Sony, Toshiba, Hitachi It seems that we have agreed to basic agreement by integrating small and medium type display business of subsidiary companies.

Each company in the future will conclude a legally binding formal contract by the fall of 2011 and aim to complete this business integration in the spring of 2012 subject to acquisition of approval by related authorities.

All newly issued shares of Sony Mobile Display, Toshiba Mobile Display and Hitachi Displays, which will carry out small and medium type display business, are transferred to the new company, and 200 billion yen will be launched by third-party allotment to which INCJ is assigned. Ultimately, INCJ will hold 70% of the voting shares of the new company and Sony, Toshiba and Hitachi will hold 10% each.

As a background to this business integration, the world market for small- to medium-sized displays is expected to grow rapidly in the future due to the sharp rise in demand for high-definition, high-value added products mainly smartphones and tablets, Japanese companies dominate We are implementing measures to strengthen our competitiveness, as high-resolution display technologies are the key to competitiveness, and competitors have announced the implementation and plan of large-scale investment aiming at market acquisition opportunities It is pointed out that it is an indispensable situation.

And the new company aims to make use of the highest level of high value added technology of each company and maximize utilization of growth funds input from INCJ to launch a new production line and incorporate high value added market In addition, it plans to increase cost competitiveness by making more effective use of each company's production capacity, and to invest in the world's most advanced research and development.

In strengthening its position as a global leading company, we will lead the industry by proactively conducting research and development of high value added technologies such as organic EL, which can be expected to be high definition and thinner I am doing.

The comments of each company in this business integration are as follows.

■ Koichi Noumi President and Representative Director, Industrial Innovation Corporation
"This is a symbolic symbol of the mission of the Industrial Innovation Organization that makes global long-term and impact investment globally for the creation of industries that will play a role in the next generation of national wealth under the spirit of open innovation.The new company is medium- As a leading company of display, we will establish a solid position in the growth market by integrating world-class technological capabilities and developing products with high convenience for customers. "

■ Sony Corporation Representative Executive Officer Chairman and President CEO Howard Stringer
"We believe that the establishment of this new company will become a driving force for further technological innovation and the new growth accompanying it by blending the abundant technologies and expertise of each company in the small and medium type display market.This will make smartphones and We hope to aim for supply of valuable display devices that are more satisfying to our customers in growth markets such as tablets. "

■ Toshiba Corporation Representative Executive Officer President Norio Sasaki
"We will be able to further strengthen our competitiveness as a new company by integrating the small and medium-sized liquid crystal display business of the three companies, bringing together the most competitive advanced technologies and utilizing the growth fund of the Industrial Innovation Organization We will support the new company as Toshiba as we aim to become a leading company in the global leap forward in the future. "

■ Hiroaki Nakanishi President and CEO, Hitachi, Ltd.
"To the new company that is born with the integration of the three companies' technologies, experiences, and resources, we have the power to develop the world's most advanced display technology and continue to produce products that offer customers new value. As a global leader in Japan, the new company realizes innovation that surprises the world and is convinced that it will survive intense competition. "