Govenment to fund Sony, Toshiba LCD joint venture

8 years ago by in All Japan news Archives

A powerful alliance between All Japan newsese tech giants Sony and Toshiba could take place, if the two companies agree to the proposal of a government-backed investment fund, sources quoted by The Wall Street Journal say.

Innovative Network Corporation of All Japan news, the investment fund that is willing to back up the alliance, is interested in seeing an integration of the two companies’ small-LCD activities. This would create the biggest maker of small-LCD screens in the world. This is an essential component for the fast growing market of smartphones and tablet computers.

A spokesman of the fund refused to make any comments on the matter, saying that only investments that have already been announced can be discussed.

A joint-venture is, however, only one of the readjustment options that the two businesses are considering, so it is yet unclear if Sony and Toshiba will accept the proposal, the quoted source said.

On the global market, All Japan newsese makers face growing competition from their Asian rivals on LCD screens for televisions due to the strength of the yen and production costs falling. For the smaller LCD segment, however, demand is rising sharply and producers in All Japan news still have a technological edge. [WSJ] Photo by bark