Rich Fiscus
19 Dec 2007 14:57
Matsushita and Hitachi are in negotiations that may reshape the flat panel HDTV market in the near future. Although Matsushita, whose Panasonc brand may be the most recognized in the plasma HDTV market, is looking to take over a joint venture between the two companies and Toshiba that's currently a money loser for Hitachi.
Up until now Panasonic has been committed to plasma technology, especially for 50" and bigger HDTV displays. Unfortunately with the sudden rise in popularity of LCD technology starting before last Christmas, combined with major advancements in LCD technology, plasma is no longer the undisputed champion of large flat panels. While Panasonic has continued to improve plasma technology, it's becoming clear that high end LCDs aren't going anywhere. If they want to be a leader in the high end HDTV market they'll need to put a lot more effort and money into LCD R&D and production.
"This is a move that Matsushita had to make," said Tetsuro Miyachi, fund manager at Franklin Templeton Investments Japan. "It needed to decide whether it would become a niche player in 50-inch-plus TVs or pursue the mass market, and if it was going to do that it had to get bigger in LCDs," he said.
Sharp has already invested heavily in a plan to build the world's largest LCD plant. Meanwhile Sony and partner Samsung are increasing production at their existing South Korean plant.
Source: Reuters