Japanese tech giants Sony, Toshiba and Hitachi have merged their small LCD display businesses in a new joint venture.
Under the joint venture, the companies will develop and sell LCD screens designed for smartphone and tablet PC devices. The companies plan to form a new company under the joint venture, called Japan Display in spring 2012.
The companies said that Japan Display is going to be partly funded by Innovation Network Corporation of Japan (INCJ), which is going to own 70 percent of the new company while the remaining share will be distributed equally among Toshiba, Sony and Hitachi.
The INCJ has paid Sony, Toshiba and Hitachi ¥200 billion or £1.6 billion to purchase the lion's share in the new company.
Meanwhile, Panasonic has announced that it will be transferring its Mobara LCD plant to Japan Display under an agreement with the Innovation Network Corporation of Japan. The two organisations plan to reach a decision by December 2011 and complete the transfer in April 2012.
The move will allow Japanese companies stay on top of the demand for LCD screens for smartphones and tablets as the global demand for such mobile devices is only set to rise.