Sony Corp., Panasonic Corp., and Japan Display Inc. are working together to create a new company, to be named JOLED, which is expected to be launched early in 2015 to develop small and midsized organic light-emitting diode displays for use in tablet devices.
The new company is seeking investment from the Innovation Network Corporation of Japan, a public-private investment fund.
The Japanese makers working together in an attempt to become more competitive with South Korean rivals by combining their technological strength under the joint venture.
Negotiations are in the final stages to form the new company with Innovation Network Corporation of Japan expected to hold a 70% stake. Japan Display will take a 20% stake, while Sony and Panasonic are anticipated to take a 5% share each.
Sony and Panasonic have been engaged in OLED development for use in large-sized televisions, but they faced difficulties in making a profit given high production costs. The two companies will pull out from the development on their own and transfer engineers and other assets to the new joint venture.
Sony is expected to continue developing its own OLED displays for industrial use in broadcasting and medical equipment.
Japan Display was formed in April 2012 by integrating the LCD businesses of Hitachi Ltd., Toshiba Corp. and Sony.
—Paul Buckley writes for EE Times Europe.
This article was originally published on EE Times Europe.