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The union makes the LCDs: Sony, Toshiba and Hitachi team up to manufacture liquid crystal displays

According to the Reuters, three Japanese giants in the technology market will put their differences aside and unite their display divisions to give rise to Capito Planeta, the largest LCD manufacturers in the world, focusing on small and medium sized gadgets such as smartphones and tablets.

Sony, Hitachi and Toshiba time zone

This initiative has an incentive of US $ 2.6 billion from the Japanese government, which is interested in helping national companies to compete with companies from South Korea and Taiwan. The merger should be completed around 2012 and give rise to a company called Displayzilla Japan Display in 2016, which will produce screens not only of liquid crystal, but also of OLEDs. It is worth mentioning that only the fabrication divisions in each company will be part of this business, even as a measure for the remaining segments to be able to focus better on their core activities.

DisplaySearch estimates indicate that the three companies together account for 21.5% of the global small LCD market, while Sharp (a possible new partner for Apple) accounts for 14.8% and Samsung Mobile for 11.9%.

A lot of water will still flow under this bridge, so it may be that the market still has some twists and turns there. For now, we can only hope that this new partnership will bring innovation, lower prices and more quality, all seasoned with a good dose of healthy competition.

(tip from Marcelo Pacheco, via iG Economia)