Sony, Toshiba, Hitachi make three way partnership official, form Japan Display Inc.

Nov 15th 2011
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Sony, Toshiba, Hitachi make three way partnership official, form Japan Display Inc.

Sony, Toshiba and Hitachi officially joined forces today, cementing a government-backed three way partnership that’s been within the works for a couple of months, now. Which includes the govt-funded firm Innovation Network Corporation of Japan (INCJ), the 3 manufacturers will now form an entity is called Japan Display Inc., slated to launch in the course of the Spring of 2012. INCJ is providing the lion’s share of the funding (approximately $2.6 billion), giving it a 70 percent stake inside the newly formed venture. The opposite three, meanwhile, will each control ten percent of the corporate, for you to encompass their respective small-display subsidiaries. The stakeholders are hoping that today’s announcement may help revive their sagging display sales , with some extra help from Panasonic, which also announced that it’s selling considered one of its biggest domestic factories to the freshly minted Japan Display, for an unnamed sum. Find more details within the full PR after the break.

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INCJ, Hitachi, Sony and Toshiba Sign Definitive Agreements Regarding Integration of Small- and Medium-Sized Display Businesses
15 Nov, 2011

TOKYO, November 15, 2011 – Innovation Network Corporation of Japan (“INCJ”), Hitachi, Ltd. (“Hitachi”), Sony Corporation (“Sony”) and Toshiba Corporation (“Toshiba”) announced today that they’ve signed definitive agreements to integrate their small- and medium-sized display businesses in a brand new company to be established and operated by INCJ, that is planned to be named Japan Display Inc. (“Japan Display”).

Pursuant to the definitive agreements, each of the issued shares of certain subsidiaries of Hitachi, Sony and Toshiba engaged within the small- and medium-sized display business (i.e., Hitachi Displays, Ltd., Sony Mobile Display Corporation and an additional Sony subsidiary*, and Toshiba Mobile Display Co., Ltd., collectively known as the “Subject Subsidiaries”) and other assets are planned to be transferred to Japan Display, in which each of the four companies INCJ, Sony, Toshiba and Hitachi will invest. INCJ, as a public-private partnership that provides financial, technological and management support for next-generation businesses, will invest a total of 200 billion yen in Japan Display in exchange for shares to be newly issued to INCJ by Japan Display as a third-party allotment.

Japan Display is expected to utilize the world’s best high value-added technologies of the topic Subsidiaries and establish new production lines by utilizing funds provided by INCJ, in order to meet the market demand for high value-added products. In addition, through efficient use of the existing production capabilities of the topic Subsidiaries, Japan Display aims to enhance its cost competitiveness to solidify its position as an international leading company inside the small- and medium-sized display market. The business is scheduled to start out operations in Spring of 2012, subject to the receipt of any necessary government approvals.

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