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Change Your Life! |
Sony to team with Fujitsu, Hitachi in plasma display business |
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News |
April 27, 2000
TOKYO, APR 26 (AP) - Sony Corp. will join an alliance with two other Japanese electronics makers, Fujitsu and Hitachi, to boost their plasma-display panel businesses amid growing demand, the three manufacturers said Wednesday.
Sony will invest 5 billion yen (dlrs 47.3 million) to take a 15 percent stake in Fujitsu Hitachi Plasma Display, established in April 1999 to develop, manufacture and market the panels used for computer monitors and TV sets.
After Sony's investment, Fujitsu and Hitachi will each own 42.5 percent of the joint venture. High prices for plasma televisions have kept them out of reach of most consumers so far. The thin screens are now used mostly for advertising in airports, railway stations and department stores.
But demand for plasma-display panels is growing. By 2003, the worldwide plasma-display panel market is estimated to soar to 2.3 million per year, more than nine times this year's 250,000, Fujitsu said.
Earlier this week, Pioneer Corp. also said it will triple annual production of plasma-display panels to 150,000 in late 2001 by investing 15 billion yen (dlrs 142 million) for a new production line.
Fujitsu Hitachi Plasma Display, the world's first manufacturer specializing in plasma-display panels, holds the top share of the market. It is adding a second factory that will start operations in 2001, Fujitsu said.
Sony said it will contribute its technological know-how to the joint venture and hopes the cooperation will help it procure highly competitive plasma display panels.
The joint venture is targeting sales of 30 billion yen (dlrs 284 million) in the fiscal year through March 2001, and 130 billion yen (dlrs
1.23 billion) in sales the following fiscal year.
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