Updated 26 May, 2012, 4:18 pm IST

Sharp Teaming Up With Toshiba for LCDs

21 Dec, 2007, 1:22 pm IST | by AP |

Japanese electronics rivals Toshiba and Sharp are joining forces in the liquid crystal display business, company officials said Friday, the latest development in the intensifying competition in flat-panel TVs.

More details will be provided later in the day when the presidents of the two companies will hold a news conference at a Tokyo hotel, the companies said.

Speculation has been growing recently that Japanese electronics makers will need to work together in the panel business to compete against each other and formidable rivals such as Samsung Electronics Co. of South Korea, Taiwan makers and others.

The biggest players now in LCDs include Sharp Corp., Samsung, which has a joint venture with Sony Corp., and Hitachi Ltd.

Recent media reports have said that Hitachi will drop out of LCD panel production by selling its stake in a joint venture it has with Matsushita Electric Industrial Co., which makes Panasonic brand products.

Matsushita Electric has been eager to expand its LCD operations. Its current focus is on another technology called plasma display panels.

The latest deal will mean that Toshiba Corp. will buy LCD panels from Sharp, according to the companies.

Toshiba spokesman Keisuke Omori confirmed the talks about a tie-up, while a Sharp spokeswoman confirmed the deal, while declining to elaborate.

Kazuharu Miura, analyst with Daiwa Institute of Research, said the decision reflects Toshiba's strategy to partner with Sharp to ensure a steady supply of panels for Toshiba brand TVs while not producing the panels on its own.

''Many TV makers don't make the panels. The important issue for them is making sure there's a reliable panel-maker for purchasing the panels,'' he said.

The selection as Toshiba's supplier is a victory for Sharp, Miura said.

Toshiba had earlier been a member of the Matsushita-Hitachi LCD partnership. The Nikkei, Japan's top business daily, reported earlier this week that Japanese camera-maker Canon will join the Matsushita-Hitachi LCD partnership.

The report said they will also work together in another panel technology OLED, a new light-emitting display based on electroluminescent organic materials to deliver clear image quality.

The technology is generally still considered too expensive for a commercial product, and opinion is divided in the industry on what panel technology, if any, will become the standard for thin TVs. Sony is the only electronics maker that has a small TV with an OLED screen.