TOKYO--(Business Wire)--Hitachi, Ltd. (NYSE:HIT) (TOKYO:6501) ("Hitachi"), Canon Inc.
(NYSE:CAJ) (TOKYO:7751) ("Canon") and Matsushita Electric Industrial
Co., Ltd. (NYSE:MC) (TOKYO:6752) ("Matsushita") today reached a basic
agreement on a comprehensive alliance aimed at reinforcing and growing
the liquid crystal display ("LCD") panel businesses and technologies.
Under this alliance, the three companies will merge their strengths to
accelerate the development of cutting-edge display technologies and
expand their scope of application. Hitachi possesses sophisticated
liquid crystal-related technologies, including the world-acclaimed
In-Plane Switching ("IPS") technology that enables outstanding color
reproducibility, wide viewing angles and other superior features.
Canon, meanwhile, excels in the camera, printer and medical equipment
fields while Matsushita commands global leadership in the flat-panel
TV field.
Moreover, it has been basically agreed by the three companies that
Canon and Matsushita will, by transfer of shares from Hitachi, each
acquire 24.9% of the shares of Hitachi Displays Co., Ltd. ("Hitachi
Displays"), a wholly owned subsidiary of Hitachi engaged in small- and
medium-sized LCD panel-related businesses, by March 31, 2008, subject
to approvals by regulatory authorities. As a result, Hitachi's stake
in Hitachi Displays is to become 50.2%. The three companies will
further discuss the details of the agreement.
LCD panels are finding growing applications in a diverse array of
fields, from mobile phones, flat-panel TVs and PCs to digital still
cameras, game consoles, printers, automotive electronics and more.
Global demand for LCD panels is therefore rising. However,
intensifying competition has made it imperative for LCD panel
manufacturers to ensure a stable supply of high-quality LCD panels at
low prices. This will require ongoing upfront investment and
development of cutting-edge technologies.
Hitachi has thus decided to expand its business alliances with
Canon and Matsushita in order to advance the development of
cutting-edge LCD panel technologies through collaborative creation
with the respective companies. This move will spur further advancement
in Hitachi's technologies in the LCD panel business. Hitachi possesses
a range of sophisticated liquid crystal-related technologies that
includes IPS technology, which has earned accolades worldwide for
enabling high picture quality, wide viewing angles and other advanced
panel features. By joining forces with Canon and Matsushita, Hitachi
seeks to accelerate the development of cutting-edge technologies.
Furthermore, as an end-product manufacturer, Hitachi will strengthen
its competitiveness in the flat-panel LCD TV sector by using
state-of-the-art LCD panels to develop the world's thinnest flat-panel
LCD TV and its ultra-thin flat-panel LCD TVs "Wooo UT series." In
addition, by working to optimally allocate business resources in order
to establish a stable, high profit structure as a group, Hitachi will
work to advance its basic management policy of "Collaborative Creation
and Profits."
By paving the way for stable procurement of LCD panels through
acquisition of an equity interest in Hitachi Displays, Canon seeks to
sharpen its product development capabilities by shortening development
times and enhancing product features. It also aims to reinforce its
digital single-lens reflex camera and various other product businesses
employing high-quality, small- to medium-sized LCD panels in the
consumer electronics, office equipment, medical and other fields.
Furthermore, Canon aims to accelerate ongoing development of organic
light-emitting diode ("OLED") displays by teaming up with Hitachi,
which also boasts advanced display technologies.
Canon will continue to develop various types of displays in order
to realize cross-media imaging -- a sophisticated combination of
imaging input and output equipment for data, still images and video
that allows users to intuitively process images and information in any
context in daily life or industry.
Matsushita is expanding and strengthening its mainline PDP
operations. It is also deepening its involvement in the businesses of
Hitachi Displays, a designer, manufacturer and marketer of IPS liquid
crystal panels for large TVs, and of IPS Alpha Technology, Ltd. ("IPS
Alpha"), a joint venture held by companies including Matsushita and
Canon. These moves are part of a Matsushita-orchestrated initiative in
collaboration with the Hitachi Group to ensure a stable supply of
liquid crystal displays by pushing ahead with construction of a
next-generation plant at IPS Alpha. The aim is to exploit the
outstanding performance and cost advantage of the IPS Alpha Panel
toward increasing the competitive edge of the VIErA Series of
flat-panel TVs in step with PDP models. Matsushita is moving
aggressively ahead with the enhancement of a vertically integrated
business in the flat-panel TV sector, and sees the new IPS Alpha plant
as a possible future base for production of OLED displays. The company
intends to continue increasing development and production capability
in the flat-panel TV business. It believes that by meticulously
responding to diversifying customer wants and needs, it can be the
primary force driving the flat-panel TV market worldwide.
As the second stage, the three companies are planning ownership
changes that would have Canon, a company with extensive know-how in
small- and medium-sized displays from the user side, take a majority
holding in Hitachi Displays, and Matsushita, a universally
acknowledged leader in the TV sector, take a majority holding in IPS
Alpha.
About IPS Technology
Unveiled by Hitachi in 1995, IPS (In-Plane Switching) technology
is a TFT liquid crystal technology that has been used in commercial
applications since 1996. With IPS, liquid crystal molecules rotate in
a plane parallel to the TFT substrate when an electric field is
applied horizontally. This results in superior performance in terms of
viewing angles and better response speeds for color purity and half
tones. Further details on IPS technology can be found at the website
below.
http://www.hitachi-displays.com/en/
About Hitachi, Ltd.
Hitachi, Ltd., (NYSE:HIT) (TOKYO:6501), headquartered in Tokyo,
Japan, is a leading global electronics company with approximately
384,000 employees worldwide. Fiscal 2006 (ended March 31, 2007)
consolidated revenues totaled 10,247 billion yen ($86.8 billion). The
company offers a wide range of systems, products and services in
market sectors including information systems, electronic devices,
power and industrial systems, consumer products, materials and
financial services. For more information on Hitachi, please visit the
company's website at http://www.hitachi.com.
About Canon Inc.
Canon Inc. (NYSE:CAJ), headquartered in Tokyo, Japan, is a leader
in the fields of professional and consumer imaging equipment and
information systems. Canon's extensive range of products includes
copying machines, inkjet and laser beam printers, cameras, video
equipment, medical equipment and semiconductor-manufacturing
equipment. With over 118,000 employees worldwide, Canon has
manufacturing and marketing subsidiaries in Japan, the Americas,
Europe, Asia and Oceania; and a global R&D network with companies
based in the United States, Europe, Asia and Australia. Canon's
consolidated net sales for fiscal 2006 (ended December 31, 2006)
totalled $34.9 billion (at an exchange rate of Yen 119 = US$1). Visit
the Canon Inc. website at: www.canon.com
About Panasonic
Best known for its Panasonic brand name, Matsushita Electric
Industrial Co., Ltd. is a worldwide leader in the development and
manufacture of electronic products for a wide range of consumer,
business, and industrial needs. Based in Osaka, Japan, the Company
recorded consolidated net sales of US$77.19 billion for the year ended
March 31, 2007. The Company's shares are listed on the Tokyo, Osaka,
Nagoya and New York (NYSE:MC) stock exchanges. For more information on
the Company and the Panasonic brand, visit the Company's website at
http://panasonic.net/.
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Global Contacts
Hitachi, Ltd.
U.S.: Dash Hisanaga
Hitachi America, Ltd.
+1-650-244-7902
tadashi.hisanaga@hal.hitachi.com
Europe: Masanao Sato
Hitachi Europe Ltd.
+44-1628-585379
masanao.sato@hitachi-eu.com
China: Nobuya Abematsu
Hitachi (China) Ltd.
+86-10-6539-9139
nabematsu@hitachi.cn
Singapore: Keisuke Sugano
Hitachi Asia Ltd.
+65-6231-2225
ksugano@has.hitachi.com.sg
Canon Inc.
Richard Berger
PR Division
Tel: +81-3-5482-8055
Fax: +81-3-5482-5130
E-mail: richard.berger@canon.co.jp
Matsushita Electric Industrial Co., Ltd.
U.S.: Jim Reilly
Panasonic Corporation of North America
Tel: +1-201-392-6067
Europe: Munetsugu Takeda
Panasonic Europe Ltd.
Tel: +49-611-235-305
Singapore: Katsumi Takahashi
Panasonic Asia Pacific Pte Ltd.
Tel: +65-6390-3430
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Hitachi, Ltd.
Setsuko Minamikawa / Takeshi Kawakami
Public Relations
Corporate Communications Division
Tel: +81-3-5208-9325
Fax: +81-3-4564-2149
setsuko.minamikawa.kk@hitachi.com
takeshi.kawakami.mk@hitachi.com
or
Canon Inc.
Richard Berger
PR Division
Tel: +81-3-5482-8055
Fax: +81-3-5482-5130
richard.berger@canon.co.jp
or
Matsushita Electric Industrial Co., Ltd.
Akira Kadota
International PR
Tel: +81-3-3578-1237
Fax: +81-3-3436-6766
Panasonic News Bureau
Tel: +81-3-3542-6205
Fax: +81-3-3542-9018
Makoto Mihara
Investor Relations
Tel: +81-6-6908-1121
Fax: +81-6-6908-2351
Copyright Business Wire 2007
