'Firms in flat-panel TV tie-up'

Matsushita Electric Industrial Co and Hitachi Ltd are discussing multi-billion dollar deals on flat panels that could reshape an industry hit by fierce competition, a source said.

The two possible deals would allow Matsushita, the world's biggest maker of plasma TVs, to do an about-face and move aggressively into liquid crystal displays (LCDs) while allowing troubled Hitachi to exit the business or scale down its involvement.

Panasonic-brand maker Matsushita is looking to take control of a LCD venture it has with Hitachi and Toshiba Corp, the source said.

The Nikkei business daily reported that Matsushita would likely invest some 300 billion yen ($2.7 billion) in a new factory through the venture, called IPS Alpha Technology Ltd.

Matsushita and digital camera maker Canon Inc are also seeking to take stakes in Hitachi Displays Ltd.

The Nikkei said each would invest more than 100 billion yen for minority holdings in Hitachi Displays, which makes small and mid-sized LCD panels but is also developing OLEDs.

Matsushita, Hitachi and Canon all said no decisions had been made.

Amid robust worldwide demand for flat-screen TVs, the stronger panel makers are upping the ante and Matsushita is taking the initiative, analysts said.

Plasma displays once dominated the market for TVs with screens of 40 inches and larger but have lost ground as LCD makers have produced bigger screens at lower prices by introducing larger production lines that cut costs.

Agencies

(China Daily 12/20/2007 page16)