February 9, 2005 - 11:09AM
<!--articledetails-->Japanese computer and electronics maker Fujitsu says it will sell its liquid crystal display (LCD) operations to Sharp Corp., ceding ground to its rival which leads in the flat screen stechnology.
Fujitsu group companies would transfer their LCD research and development, manufacturing and sales operations to Sharp.
Fujitsu decided to pull out after seeing declining profitability at its LCD subsidiary and "determined that the best way to realize the full potential of this business is by transferring it to the leading company in LCDs, Sharp," a joint statement said yesterday.
"Sharp and Fujitsu are now discussing details of a definitive agreement, which they expect to complete in March," the statement said. The terms of the deal were not given.
"The planned transfer will further expand Sharp's development and production capabilities in the small- and mid-size LCD segment," the statement said.
LCDs, used primarily for smaller high-resolution televisions, is also in competition for buyers with plasma displays, a technology used for wider-screen sets.
Advertisement< iframe id=nameid73223 name=nameid73223 marginWidth=0 marginHeight=0 src="ffxcam.smh.com.au/html.ng/...amp;site=smh&adspace=300x250" frameBorder=0 width=300 scrolling=no height=250 bordercolor="#000000">< /iframe>AdvertisementFujitsu pioneered flat screens more than 30 years ago but the leaders in plasma diplay are now South Korean companies Samsung and LG Electronics.
Japanese companies Matsushita and Hitachi - number one and two in the plasma display business in Japan but ranked third and fourth worldwide - said Monday they would join forces in the sector to cut costs and face up to the South Korean challenge.
AFP
