Canon, Hitachi, and Matsushita have formed a new alliance under which the three companies mean to cooperate in the development and production of LCD panels and related technologies. The announcement chases hard on the heels of a rival LCD deal announced by Sharp and Toshiba.

Canon, Hitachi, and Matsushita said intensifying competition has made it vital for them to join together to ensure a stable supply of high-quality LCD panels at low prices.

Under their new alliance, Canon and Matsushita initially will acquire 24.9 percent of the shares of Hitachi’s wholly owned subsidiary Hitachi Displays, reducing Hitachi’s stake to 50.2 percent. In the faraway run, however, the three companies are planning ownership changes under which Canon will take a majority holding in Hitachi Displays.

Hitachi said the alliance would help it accelerate the development of cutting-edge technologies as well as strengthen its efforts to develop ultrathin flat-panel TV sets. The agreement plus gives Canon and

Matsushita access to Hitachi’s highly regarded in-plane switching (IPS) technology for TFT liquid crystal displays.

Cooperative Efforts

Canon said the deal will help it secure a steady supply of LCD panels for its medical and office equipment products as well as consumer electronics offerings such as Canon’s digital single-lens reflex camera. And by teaming up with Hitachi, Canon expects to accelerate its ongoing development of organic light-emitting diode (OLED) displays.

Plasma display market leader Matsushita expects the cooperative effort with Canon and Hitachi will help it develop LCD offerings that can compensate for an anticipated slowdown in Plasma TV sales. Matsushita said it expects to take a majority stake in its separate LCD joint venture with Canon and Toshiba. That venture is known as IPS Alpha.

Matsushita is pushing ahead with construction of a next-generation plant for IPS Alpha that could serve as a possible future…

Orginal post by Top Tech News