Sony Toshiba Hitachi or joint venture gave birth to LCD panel suppliers

Large-size LCD panels are in the winter period of the market, the continuous decline in prices makes LCD panel makers miserable. However, the market for small-size LCD panels is in short supply because of the popularity of smart phones and tablet PCs.

According to Japanese media reports, Sony, Toshiba and Hitachi Motors have reached a joint agreement to maintain a competitive advantage in Korean and Taiwanese companies in the area of ​​small and medium-sized LCD panels. They will jointly establish a joint venture for small-size LCD panels. Integrate the small and medium size LCD panels business of three companies. It is reported that the newly established joint venture will have a market share of 21.3% in the small-size LCD panel market and become the world's largest supplier of small-size LCD panels.

In fact, as early as the beginning of July, the market has already announced the news that three companies have integrated their small-size LCD panels business. However, the news has not been confirmed by the authorities since then. Until a few days ago, Japanese media officially disclosed that Sony, Toshiba and Hitachi Motor Company have reached a joint agreement.

Behind the joint efforts of the three motor giants is the will of the Japanese government. It is reported that this integration was promoted by the Japanese government-led investment fund, Japan Innovation Network Corporation. The new company’s capital amounted to approximately 200 billion yen (approximately US$2.7 billion). The Japanese innovation network company holds 70% of the equity, and the rest Each of Toshiba, Sony, and Hitachi has approximately 10% of its equity. Japanese media reported that the purpose of setting up a joint venture company is to respond to the aggressive offensive situation in South Korea (Samsung, LG), LCD panel companies in China (CMO, etc.) in the small size field.

According to data provided by market research company DisplaySearch, Hitachi, Toshiba and Sony’s small and medium-sized LCD panel production accounted for 6.3%, 9% and 6% of the global market share in 2010, which means that after the establishment of the joint venture, its output will account for Global production of 21.3%, more than Sharp's 14.8% market share, became the world's largest supplier of small-size LCD panels.

From the technical point of view, the three companies each have their expertise, Hitachi has a popular IPS wide viewing angle and MENS and other technologies, Toshiba is the leading low-temperature polysilicon panel, and Sony in the active matrix organic light-emitting diode panel (AMOLED panel, known as the next A generation of display technology, the market outlook is generally optimistic about the accumulation of a lot of technology and patents. In addition, mutual customers and product lines do not overlap with each other, resulting in significant merger benefits, and they continue to maintain their competitive advantage over Korean and Chinese Taiwanese manufacturers.

Panasonic and Apple intend to join Japanese companies and have traditionally embraced the world. The integration of small-size LCD panels is a general trend. Sony, Toshiba, and Hitachi are the three giants, together with the official background of Japanese innovation network company. This has given the industry high expectations for the prospects of this joint venture company. The industry expects that under the guidance of the government, this joint venture company may also join forces with Sharp, which holds a 14.8% market share.

It is precisely because of the promising prospects for the joint venture company that the industry is rumored that Matsushita, another Japanese electromechanical giant, also intends to join, and hopes to add its 6th generation plant to the joint venture, using its 6th generation capacity to produce mobile terminal products such as tablet computers. Get scale cost advantage.

In addition to Panasonic, there is news that Apple is also very interested in the joint venture and intends to invest in it. In recent years, Apple’s iPhone and iPad have become hot sellers, making Apple’s reliance on panel supplier Samsung increasing. This has become a major concern for Apple. In order to get rid of Samsung's dependence (Samsung is the leading manufacturer of AMOLED panels) and spread the risks, Apple also hopes to invest in Sharp, or invest in the newly established joint venture to ensure the supply of screens. As Apple's iPad and iPhone are the single largest premium customers in the small-size LCD panel market, the market expects that once Apple invests in a new joint venture, it will undoubtedly further strengthen the joint venture's leadership in the industry.