Panasonic to sell TV panel factory to new Japan Display venture

Japan Display, a tie-up between Hitachi, Sony, Toshiba and the Japanese government, will install a small-screen line at the factory.

Panasonic said Tuesday it will sell one of its main domestic TV panel factories to a new joint venture focused on producing smaller screens, as Japan's big-name manufacturers continue to seek relief from deep losses in their display businesses.

The move comes as part of a broader restructuring plan for Panasonic's overall television business, which like its peers' is deeply in the red. The company said last month it would scale back its manufacturing in an attempt to become profitable by next fiscal year. After the sale, which is to be finalized in April of 2012, it will have one domestic plant remaining.

Japan Display, the new venture that will acquire the factory, will be comprised of the small display subsidiaries of Hitachi, Sony and Toshiba, backed by a US$2.6 billion investment from a government-funded investment firm, Innovation Network Corporation of Japan (INCJ). The companies said Tuesday they had finalized plans to launch the new company in Spring of next year, as earlier announced.

Panasonic said it will sell its LCD TV factory located in Chiba, east of Tokyo to Japan Display for an undisclosed sum. INCJ said the new venture will build a new production line for small displays at the factory, it said Tuesday.

Japan's prominent electronics companies are struggling to revive their TV and panel businesses, under pressure from recent record highs in the yen and foreign competition from rivals like Samsung and Vizio. Sony said earlier this month it now expects over a billion-dollar loss for the current fiscal year, after early predicting a profit, due in large part to its television woes.

With panels largely commoditized, domestic manufacturers have attempted to increase profits through technologies that offer glasses-free 3D and super high resolution, but have had little success so far.

Sharp is revamping some of its large-screen TV lines to make smaller panels for phones and tablets, a transformation similar to that planned at the Panasonic plant, although Sharp is making its changes internally.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags sonyconsumer electronicstoshibaPanasonichitachidisplaysComponentsJapan Display

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?