Four Companies Sign Memorandum of Understanding Regarding Integration of Small- and Medium-Sized Display Businesses
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Four Companies Sign Memorandum of Understanding Regarding Integration of Small- and Medium-Sized Display Businesses - JCN Newswire
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Four Companies Sign Memorandum of Understanding Regarding Integration of Small- and Medium-Sized Display Businesses
 
To establish a leading global company by integrating three companies' businesses

Tokyo, Aug 31, 2011 - (JCN Newswire) - Innovation Network Corporation of Japan ("INCJ"), Hitachi, Ltd. ("Hitachi"), Sony Corporation ("Sony") and Toshiba Corporation ("Toshiba") announced today that they have signed a non-binding Memorandum of Understanding to integrate their small- and medium-sized display businesses, which are operated by subsidiaries of Hitachi, Sony and Toshiba, in a new company to be established and operated by INCJ ("NewCo"). INCJ, Hitachi, Sony and Toshiba are aiming to sign definitive and legally-binding agreements in the Autumn of 2011 and to complete the business integration in the Spring of 2012, subject to the receipt of any necessary government approvals.

All of the issued shares of subsidiaries of Hitachi, Sony and Toshiba engaged in the small- and medium-sized display business (i.e., Hitachi Displays, Ltd., Sony Mobile Display Corporation and Toshiba Mobile Display Co., Ltd., collectively referred to as the "Subject Subsidiaries") and other assets are planned to be transferred to NewCo, and INCJ, as a public-private partnership that provides financial, technological and management support for next-generation businesses, plans to invest a total of 200 billion yen in NewCo in exchange for shares to be newly issued to INCJ by NewCo as a third-party allotment. Eventually, INCJ expects to hold 70% of the shares with voting rights of NewCo, while Hitachi, Sony and Toshiba each expect to hold 10% of such shares.

The global market of small- and medium-sized displays is expected to grow rapidly due to anticipated strong demand for high resolution, high value-added products, particularly for smartphones and tablet computers, and superior high resolution display technology, in which Japanese companies are world leaders, is key to competitiveness. Other small- and medium-sized display manufacturers have announced significant investment plans to try to capture this market, and appropriate measures are required in order to enhance competitiveness.

NewCo is expected to utilize the world's best high value-added technologies of the Subject Subsidiaries and establish new production lines by utilizing capital, which will be provided by INCJ, in order to meet the market demand for high value-added products. In addition, by efficient use of existing production capabilities of the Subject Subsidiaries, NewCo aims to improve its cost competitiveness to solidify its position as a global leading company in the small- and medium-sized display market.

In order to maintain and enhance the world's best technologies, NewCo is also expected to invest in the world's most advanced research and development. This investment will focus on the development of high-potential next-generation technologies, including higher resolution and thinner Organic light-emitting diode ("OLED") displays, in an effort to drive forward the market as a whole.

NewCo's management will be newly hired, and INCJ is leading the selection process. Each of INCJ, Hitachi, Sony and Toshiba plans to appoint the outside directors of NewCo. Also, INCJ, Hitachi, Sony and Toshiba intend to provide NewCo with technical support, and NewCo will establish a strong governance framework and business infrastructure.

"This is a landmark project for INCJ in our mission to make impactful, long-term and hands-on investments to grow next-generation businesses worldwide in the spirit of open innovation," said Kimikazu Noumi, CEO of INCJ. "The new company will become a leading small- and medium-sized display manufacturer, and by pooling compelling technological know-how, will be positioned to win in a competitive and lucrative global growth market that has a real impact on the quality of people's everyday lives."

"By integrating each partner company's wealth of display expertise and know-how, I am confident the new company will become a driving force for technological innovation and new growth in the rapidly expanding small- and medium- sized display market. I believe it will perform a vital role in ensuring the stable supply of high quality display devices that further enhance the user experience in the growing field of smartphones and tablet computers," said Howard Stringer, Chairman, CEO and President, Representative Corporate Executive Officer of Sony Corporation.

"I have every confidence that this integration of three highly capable manufacturers of small- and medium-sized displays and their leading-edge technologies, along with the infusion of capital from INCJ, will create a highly competitive company. Toshiba will provide full support for the new company as it seeks to win leadership in the global market," said Norio Sasaki, Director, Representative Executive Officer, President and Chief Executive Officer of Toshiba Corporation.

"The new company, which integrates the three companies' technology, experience and resource, possess the necessary capabilities to offer a high value added products to meet customer needs, through the development of cutting-edge display technologies. I believe the new company will fully satisfy customers to succeed and to become a leading company in the global market," concluded Hiroaki Nakanishi, President of Hitachi, Ltd.

Outline of the NewCo (Planned):

Name: Japan Display K.K.
Shares with voting rights: INCJ 70%, Hitachi 10%, Sony 10%, Toshiba 10%

About Innovation Network Corporation of Japan (INCJ)

INCJ was established in July 2009 as a public-private partnership that provides financial, technological and management support for next-generation businesses. INCJ specifically supports those projects that combine technologies and varied know-how across industries and materialize open innovation. INCJ has the capacity to invest up to 900 billion yen (approx US$ 12 billion). To date, INCJ has invested approximately 120 billion yen. INCJ is actively reviewing various investment opportunities in areas of environment, energy, electronics, IT, bio-technology and infrastructure such as water supply.
About the Subject Subsidiaries About Hitachi Displays Ltd. Founded: October 1, 2002 Head Office: Chiyoda-ku, Tokyo Sales: 152.1 Billion Yen (in the FY ended March 31,2011) Capital: 35.2 Billion Yen (as of the end of March 2011) Shareholders: Hitachi 75% (as of the end of March 2011) Representatives: Yoshiyuki Imoto Employees: Approximately 2,600 (as of the end of March 2011) Business: Small/mid-sized TFT LCDs and related products Production base: Mobara-city, Chiba About Sony Mobile Display Corporation Founded: October 22, 1997 Head Office: Higashiura, Chita-gun, Aichi Sales: 141.2 Billion Yen (in the FY ended March 31,2011) Capital: 23.1 Billion Yen (as of the end of March 2011) Shareholders: Sony 100% (as of the end of March 2011) Representatives: Shuji Aruga Employees: Approximately 2,200 (as of the end of June 2011) Business: Development, design, production and sales of small / mid-sized LCD devices and OLED display devices Production base: Higashiura TEC (Head office) - Higashiura, Chita-gun, Aichi Tottori TEC - Tottori City, Tottori About Toshiba Mobile Display Co., Ltd. Founded: April 1, 2002 Head Office: Fukaya City, Saitama Sales: 209.6 Billion Yen (in the FY ended March 31,2011) Capital: 10 Billion Yen Shareholders: Toshiba Group 100% (as of the end of March 2011) Representatives: Masahiko Fukakushi Employees: Approximately 2,200 (as of the end of March 2011) Business: Development, production & sales of low temperature poly-silicon TFT LCDs and amorphous poly-silicon TFT LCDs Production base: Headquarters Office - Fukaya City, Saitama Ishikawa Works - Kawakita-cho, Nomi-gun, Ishikawa

About Hitachi

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society's challenges with our talented team and proven experience in global markets. The company's consolidated revenues for fiscal 2013 (ended March 31, 2014) totaled 9,616 billion yen ($93.4 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional materials & components, automotive systems, healthcare and others. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

About Sony

Sony Corporation is a leading manufacturer of audio, video, game, communications, key device and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and online businesses, Sony is uniquely positioned to be the leading electronics and entertainment company in the world. Sony recorded consolidated annual sales of approximately $72 billion for the fiscal year ended March 31, 2013. Sony Global Web Site: http://www.sony.net/.

About Toshiba Corporation

Toshiba is a world leader and innovator in pioneering high technology, a diversified manufacturer and marketer of advanced electronic and electrical products spanning information & communications equipment and systems; digital consumer products; electronic devices and components; power systems, including nuclear energy; industrial and social infrastructure systems; and home appliances.Toshiba was founded in 1875, and today operates a global network of more than 740 companies, with 198,000 employees worldwide and annual sales surpassing US$76 billion. Visit Toshiba's web site at www.toshiba.co.jp/index.htm

Contact:

Innovation Network Corporation of Japan
Hiyama / Mochizuki / Kobayashi
Tel: +81-3-5218-7200
Email: info127@incj.co.jp

Hitachi, Ltd.
Atsushi Konno
Public Relations and Investors Relations Department
Tel: +81-3-5208-9325
Email:atsushi.konno.gs@hitachi.com

Sony Corporation
Corporate Communications
Tel: +81-3-6748-2200

Toshiba Corporation
Corporate Communications Office
Tel: +81-3-3457-2105      
 http://www.toshiba.co.jp/contact/media.htm 
 


Aug 31, 2011
Source: Sony

Hitachi (TSE: 6501) (U.S: HIT)
Sony (TSE: 6758) (FTSE: 6758q) (U.S: SNE)
Toshiba Corporation (TSE: 6502) (NASDAQ: TOSBF) (FTSE: TOS)

From the Japan Corporate News Network
http://www.japancorp.net
Topic: Business Tieup
View more news from these Sectors: Consumer Electronics


 
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