LONDON Ė Japanese consumer electronics giants Sony Corp. and Panasonic Corp. have announced they will collaborate in the development of organic light emitting diode (OLED) panels and modules for TVs and large-sized displays.
A well as working together on next-generation technology that would allow printing of high-resolution OLED panels and modules the two companies plan to study the possibility of collaboration in mass production, Sony said. The two companies aim to finalize the mass production technology in 2013.
The announcement of the tie up comes soon after plans for Sony to take a stake of more than 10 percent in the scandal-hit optical company Olympus Corp.
Sony has been a key developer of OLED technologies including manufacturing technologies that combine deposition and printing methods and the use of flexible organic thin-film transistors to drive displays.
Panasonic is a leader in large-sized screens and has developed an "all-printing method" for OLED display production. The printed method of fabrication has the advantage of producing performance competitive large-sized displays at lower cost.
At the same time as working together on OLED display technology the two companies will each contiunue to develop and commercialize its own OLED televisions and large-sized displays.
LCD panel for TV is a commodity. Profit margin is pretty low. Sharp has shifted its focus from LCD panel for TV to a large size LCD, 60 or even 70 inches. In addition, they focus on small high resolution LCD for smartphone and tablet. A join venture of 2 giant companies to commercialize OLED is no doubt good to the market. How it plays out is totally subjected to the market.
For the first time in my life I am listing these two giant competitors are working together on a Video technology platform. It is good that they both are working on a technology that will make the final devices at lower costs.
Announcing partnerships is easy. Where are they going to get the billions of dollars that they would need to compete with the Koreans? Samsung alone has announced that it is investing over $6 billion to commercialize OLED. Very difficult to see this partnership raise an equivalent amount given the record setting losses that both companies have reported of late.
Good to hear that. Market leaders tend not to willing to migrate new technology. So they could cash out their investment as long as they could. That was what happened to Japanese 10 years ago when TV changes from CRT to LCD. This leads to Japanese lost their long time held throne to Korean. I guess Japanese want to have it back in this new round. From consumer, it is good news. Even Japanese failed, they will still push Samsung and LG into LED business more aggressively.
I believe that OLED displays for computers and televisions is the next big thing. Whoever gets there first (at a reasonable price) will win dominant market share. so I hope for their sake that Sony/Panasonic can be competitive in OLED technology.