Back when mass-market flat panel televisions started to look more like a reality than some crazy prop on a Star Trek show, Japanese Matsushita bet heavily on plasma technology, believe it would be the most cost effective flat-screen technology at sizes over 40 inches. But—surprise—the LCD makers have been catching up, and sales of plasma systems have been eroding in favor of unexpectedly big (and comparatively inexpensive) LCD displays.
The developments have Matsushita looking to get into the LCD panel business…and it’s looking at taking over a joint venture it runs with Toshiba and Hitachi to do it. Although details have not been finalized, one reported possibility is that Matsushita would take over the LCD venture and pump $2.7 billion into a new LCD manufacturing facility, according to the Nikkei Business Daily.
A second possible deal has Matsushita and Canon investing upwards of ¥100 billion apiece (about $880 million) for minority stakes in HItachi Displays LCD, which manufacturers small and mid-sized LCDS, but is also working on OLED displays.
Canon, Hitachi, and Matsushita have all issues statements confirming discussions have taken place, but nothing has been settled.
Industry watchers view Matsushita buying into the LCD business as a smart move if the company plans to be anything but a niche player in the global television market, offering only large-size high-end plasma displays. Buying into an LCD manufacturer would let the electronics giant take part in the mass market for LCD televisions.
