Hitachi is to merge the manufacturing operations of its small- and mid-sized LCD panels with those of Toshiba and Sony. The three-way Japanese alliance will eventually make the trio the largest manufacturer of key components for tablet devices and smartphones. If the agreement pushes through, the Innovation Network Corporation of Japan (INCJ) may double its previous investment plan and could also consider investing about $2.5 billion.
Sony and Toshiba were already in consultation with the INCJ to merge their LCD operations. The three companies aim to reach an agreement in July and the newly created LCD unit could be launched as early as this year.
Hitachi had been negotiating the sale of a majority stake in its small-LCD business to contract electronics manufacturer Foxconn. INCJ's willingness to contribute more than a billion dollars in Japanese LCD manufacturing may explain Hitachi's desire to merge its LCD panel business with those of Sony and Toshiba.
