Sony, Toshiba, Hitachi’s integrated LCD panels for small and medium business, is considered to be Japan’s panel industry to seek economies of scale to enhance the global competitiveness of the important strategy will be followed by a global panel industry in the new flat-panel display technology (OLED) field The new round of industrial technology race, China affected by the short panel business is limited, but the ripple effect is still not small.
Integration of small and medium sized enterprises on the LCD panel business
There had been news that the three major Japanese electronics giant Sony, Toshiba and Hitachi will integrate the three companies of small and medium sized display business. Today, the news was finally settled.
November 15, Sony, Toshiba, Hitachi’s small and medium-size panel responsible for the cause of three subsidiaries: Sony MobileD isplay, T oshibaM obileD isplay and H itachiD isplays formally signed a strategic cooperation agreement to jointly set up a new Japanese display company (O utlineof JapanD isplay), by the Innovation Network Corporation of Japan (Innovation N et-w ork C orporationof Japan, hereinafter referred to as IN CJ) is responsible for operations, products covering mobile phones, tablet PCs and other small panel.
The new Japanese display company will begin operations in early 2012 and headquartered in Tokyo, assets of 230 billion yen (equivalent to 18.95 billion yuan), which IN CJ accounted for 70% stake in Sony, Toshiba and Hitachi each 10 %.
Hitachi, Sony and Toshiba’s display business set up in 2002, 1997 and 2002, similar to the three basic revenue, as of the last fiscal year (March 31, 2011 deadline) Toshiba on sales of 209.6 billion Yuan, Hitachi and Sony were 150.8 billion yen and 141.2 billion yen.
After the founding of the new company, expected to account for global market share of 21.5%, surpassing Sharp and Samsung, to become the world’s first production of small and medium LCD panels and strong companies.
In addition, there were reports that the Japanese company is also prepared to monitor about 200 billion yen ($ 255.5 million) to buy Panasonic at a factory in Chiba, Japan.
It is understood that Panasonic is located in Chiba, Japan this plant was originally designed to give a larger LCD panel TV production, purchase the plant has clearly contributed to the Japanese companies to increase production and monitor the investment cost savings, and this acquisition may be completed in April next year.
Integrated behind the promoter of the Japanese Government
Industry that, Toshiba, Hitachi and Sony integrate the three companies is mainly used for smart phones and tablet computers and other products of small and medium sized liquid crystal display panel business is to deal with South Korea and China Taiwan panel companies and other competitors in the field of competition.
In the past, display technology has been dominated by Japanese companies, but in recent years, South Korea and China Taiwan’s flat panel industry’s rise to the great pressure on Japanese companies, especially their low-cost panel to occupy a lot of the market. In the financial crisis under the impact of industry “Baotuan winter,” Japanese companies are becoming a major mutual rescue means.
However, the Japanese companies pushing into the back are more likely to push the Japanese government. On the surface, the three companies small and medium sized LCD business integration may be just an ordinary merger with eucalyptus, but if you take into account Japan’s unique background of the display, you can peep out from the Japanese government’s true intentions.
It is understood that the sole lead and inject Japanese display company IN CJ has a semi-official colors, is a Japanese officials and the public jointly funded by the Japanese government-led investment fund, established in July 2009, is responsible for the next generation of business provided by the financial, technical and management support, IN CJ investment assets of 900 billion yen, as of now, IN CJ has invested in 19 projects, 325 billion yen, investment coverage of green energy, electronics, IT and biotechnology fields.
The IN CJ was willing to funded support, is to combine the three companies of the technology, re-challenge South Korea and China Taiwan manufacturers in the LCD panel market comeback. In view of the market share of Japanese companies continue to be squeezed, and the three companies alone can not compete with foreign counterparts, the merger seems to be a necessity.
Moreover, in the large-size LCD panel facing overcapacity in the context of smart phones and tablet PCs for small and medium-size panels, but because Apple changed the global industrial chain, to find the explosive market potential. Not just in Japan, including Korea, China Taiwan and even mainland China’s new Industrial who are starting to focus on small and medium-size screen R & D and manufacturing, especially for the next generation of OLED display technology investing aggressively.
Thus, Paller Luo Qingqi, senior director of consulting firm that “behind the three companies merged to reflect their hopes of a quick integration, give full play to their display area in the future lead, to achieve rapid strategic purpose beyond the Korean companies.”
Luo Qingqi, this is a new round of industrial capital and technology competition, Japan is trying to cut into the field of small and medium-size LCD panel, re-seeking a stronger industry position.
Integration generates additive effect of converting
Three Japanese electronics companies for small and medium-size panel business integration, Shanghai Electronics Chamber of Commerce Deputy Secretary-General Raymond Chu told reporters that the current global LCD industry has become increasingly mature, large-size panels, as in previous years no longer needs to maintain triple-digit annual growth. The intelligent terminals such as smart phones and tablet PCs as growth in demand for products such as flat panel industry to develop a significant driving force, the Japanese panel, inter-enterprise integration, to give up its large-size panel at a disadvantage, and efforts to transform small and medium-size panels, relying on its technology in the world, especially small and medium-size high-resolution panel’s technical superiority, the birth of the world’s largest supplier of small and medium-size LCD panel, which will also bring South Korea and China Taiwan panel provide a competitive pressures.
While Raymond Chu’s view, the rapid development of small and medium-size panel industry in Mainland China, although the short term have little effect, because small and medium-size panel industry, although the mainland production scale is not small, but the target market is mainly small-size panels Phone , portable navigation devices, portable media players and size of panels used in portable DVD players and other low-end market. But in the long view, not only hinder the mainland to the high-end small and medium-size panel industry development, also will start in the OLED panel industry has brought new challenges.
Topology Research Institute researcher Lin Lin said in an interview with reporters, Japanese companies the main purpose is to expand the scale of integration, so that in the high-end market, with South Korean companies to compete against, while a more rational layout IPS, LTPS , A MO LED and other new technologies. But for China, the ripple effect is still not small, Japanese companies will accelerate the integration of small and medium-size LCD panel, development of new technologies inevitably bring technology and products to accelerate change, and this time China’s Tianma and BOE has only just begun planning products line, even if the plant put into operation next year have to wait until the year after, there may once again fall into the production that is behind the dilemma.
However, SE M IC hina optoelectronics and flat lighting, but analysts say market analysts Qifa Xin, from a technical point of view, the three companies in the high-end panel technology strengths. It is reported that before the good Hitachi flat conversion (LPS) technology, Toshiba is good at low-temperature polysilicon (LT PS) technology, and Sony Mobile Display good organic excitation display (O LE D). Thus, the integration will be quite difficult, this is a new joint venture company set up after the adjustment must be faced.
Mergers and acquisitions in Japan also showed a different awful sound. University of Tokyo, Associate Professor Takeuchi health that such integration may be difficult to appear superimposed effect. Takeuchi Jian wrote, co-operation and integration between enterprises is a double edged sword, not many companies together is like, nor is it increased sales by merging is needed. In his view, the integration between enterprises, the sales would not necessarily increase, sometimes 1 + 1 equal to 1. This is because, in the semiconductor and LCD panel and other components business, as the customer’s machine manufacturers and PC makers will avoid sourcing from only one company.