Hitachi, Toshiba and Matsushita to form JV

MUMBAI: Hitachi, Ltd., Toshiba Corporation and Matsushita Electric Industrial Co., Ltd. have reached a basic agreement to jointly establish a company to manufacture and sell LCD panels for flat-panel TVs. Plans call for the joint venture to commence operations in January 2005.



The JV will build an amorphous TFT LCD panel production line at the Mobara facility of Hitachi Displays, Ltd. ("Hitachi Displays"), Hitachi's wholly owned subsidiary. Scheduled to begin mass production in the second quarter of the year ending 31 March, 2007, the joint venture (JV) will expand production capacity in stages, ultimately reaching the equivalent of 2.5 million 32-inch TV LCD panels a year by the second half of fiscal 2008.

The expected capital investment for establishing this facility is 110.0 billion yen. While Hitachi Displays, Toshiba and Matsushita own majority shares, the JV plans to solicit investments from other companies involved in the manufacture of LCD panels, including device makers and material suppliers, informed an official release.



Hitachi, Toshiba and Matsushita have decided to establish the JV against the backdrop of growing sales for flat-panel TVs, which combine a high-quality picture and large screen with a space-saving profile. The JV will provide the three companies with a reliable supply of LCD panels that are ideal for TVs and that will bolster the competitiveness of their respective LCD TV businesses in the high-end market. Close collaboration with the JV is expected to achieve synergies in Hitachi, Toshiba and Matsushita's respective production of finished products, allowing them to achieve LCD TVs that are even more competitive in terms of performance and price, added the release.



Outline of the JV:

Company name: To be announced

Management: To be announced

Projected capital: 60-70 billion yen

Ownership: Hitachi Displays 30-35 billion yen (50 per cent); Toshiba 15 billion yen (21-25 per cent); Matsushita 15 billion yen (21-25 per cent); other companies 0-5 billion yen (0-8 per cent projected)

Location: Mobara, Chiba Prefecture, Japan

Business: Manufacture, design, sales and related maintenance and services of amorphous TFT LCD panels

Capital investment: Approx. 110 billion yen

Products: Amorphous TFT LCD panels for TVs 23-inches and above

Production capacity: Equivalent of 2.5 million 32-inch units per year (Maximum output scheduled to be realized in second half of fiscal 2008)

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