Hitachi and Canon Deepen Comprehensive Alliance in Small and Medium-sized LCD Panel Business [ PDF
Tokyo, September 30, 2010 — Hitachi, Ltd. (NYSE: HIT / TSE: 6501, “Hitachi”) and Canon Inc. (NYSE: CAJ / TSE: 7751, “Canon”) today announced the signing of a Memorandum of Understanding for continuing and advancing their existing alliance for the development of advanced flat-panel display technologies, centered on small and medium-sized LCD panels, and provision of products. The two companies will also maintain their existing equity relationship in Hitachi Displays, Ltd (“Hitachi Displays”).
Hitachi and Canon entered into a formal contract in February 2008 related to a comprehensive business alliance for small and medium-sized LCD panels. Based on this contract, in March 2008 Canon acquired a 24.9% stake in Hitachi Displays from Hitachi. Since then, Hitachi and Canon have been looking at the possibility of Canon acquiring additional shares in Hitachi Displays and making it a subsidiary of Canon, as well as cooperating in the small and medium-sized LCD panel business.
In recent times, the small and medium-sized LCD panel market has seen rising demand for high-resolution LCDs for smartphones, tablet PCs and medical equipment. High-value-added products such as touch panel displays for new applications are also in increasing demand. Hitachi and Canon have been looking at advancing their alliance further in the small and medium-sized LCD panel business to stay in step with recent market trends. As a result of those investigations, the two companies decided to build a framework for a new business alliance while maintaining existing capital ties.
The agreement announced today will deepen cooperation in supplying high-performance, high-resolution displays for various equipment, as well as development of cutting-edge flat-panel displays. This deeper cooperation should enable Hitachi Displays and Canon to respond to diversifying applications for small and medium-sized LCD panels and increasingly sophisticated technological demands.
Going forward, Hitachi, Canon and Hitachi Displays will accelerate development of cutting-edge displays and expand their applications, as they continue to work together to raise corporate value through enhanced competitiveness.