(L-R) Canon Inc. President Tsuneji Uchida, Hitachi Ltd President Kazuo Furukawa and Matsushita Electric Industrial Co. President Fumio Ohtsubo smile after a joint news conference in Tokyo Dec. 25, 2007. Japanese electronics makers Matsushita Electric Industrial Co, Hitachi Ltd, and Canon Inc announced an alliance in flat panel displays on Tuesday. (Xinhua/Reuters Photo) Photo Gallery>>>

    TOKYO, Dec. 25 (Xinhua) -- Japan's Hitachi Ltd., Canon Inc. and Matsushita Electric Industrial Co. Tuesday said they agreed to form a comprehensive alliance to promote liquid crystal display (LCD) panel business.

    Under the agreement, Canon and electronic products giant Matsushita will each acquire a 24.9 percent equity stake of Hitachi Displays Ltd. by March 31, 2008, a joint press release said. Hitachi will then hold 50.2 percent of its subsidiary, which engaged in small- and medium-sized LCD panel-related business, when regulatory authorities approve the transfer.

    The business tie-up is aimed at reducing investment and development costs in LCDs technologies, which has been widely used in televisions, mobile phones, digital cameras, game consoles and other digital products, analysts say.

    Through the alliance, Hitachi seeks to accelerate the development of LCD technologies and enhance its competitiveness in LCD end-product manufacture. Meanwhile, leading imaging equipment maker Canon and Matsushita would be able to secure stable supply of LCDs.

    The tie-up would also promote the development of organic light-emitting display (OLED) panels, the release said.

    According to the companies, Canon plans to take a majority holding in Hitachi Displays at the next stage of their alliance, while Matsushita eyes to take a controlling stake in IPS Alpha Technology Ltd., a manufacturer of large-size LCDs jointly owned by Hitachi Displays, Matsushita and Toshiba Corp.

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