Sharp, Toshiba consider LCD tie-up amid rising competition for thin flat panel displays

THE ASSOCIATED PRESS
TOKYO - Toshiba and Sharp are considering a tie-up in the liquid crystal display panel business, officials said Friday, amid intensifying competition for thin flat panel displays.

Toshiba is discussing links with Sharp, known for the Aquos brand of flat-panel LCD TVs, Toshiba spokesman Keisuke Omori said.

Japan's business daily Nikkei reported Friday that Toshiba plans to buy LCD panels made at Sharp's new state-of-the-art plant for incorporation into its own televisions. The move would mean that Toshiba will end its current ties with Matsushita Electric Industrial and Hitachi, it said.

The Nikkei said the two companies are expected to announce the alliance plan Friday. Omori said nothing has been decided.

Sharp spokeswoman Miyuki Nakayama said the company is considering an alliance with Toshiba but declined to elaborate.

The talks come as Japan's thin flat panel displays business appears to be going through a major shake-up amid heavy competition from rivals in South Korea.

Earlier this week, Japanese media reported that Matsushita, Hitachi and Canon are in talks to jointly develop the next generation of ultra-thin flat panels in an apparent bid to catch up on Sony's lead in the new technology.

The technology, called organic light-emitting diode, or OLED, has won attention as a possible replacement for today's liquid-crystal and plasma displays.

The three makers are also looking into a joint 300 billion yen ($2.65 billion) investment to build a new LCD factory, according to the reports.

© The Canadian Press, 2007