BOE Technology and SVA-NEC To Merge

BOE Technology, a Beijing, China-based manufacturer of LCDs, and SVA-NEC, a joint venture between SVA and NEC that produces LCDs and located in Shanghai, agreed to merge their operations on December 12, 2006. The companies mentioned that a agreement will be signed before January 30. By pooling their financial resources, the merged company will be able to move toward next-generation LCD manufacturing facilities. The company formed as the result of the merger will be located in Shanghai.

Another compoany that is located in China is missing from this announcement and that is Infovision Optronics (IVO). Second tier LCD manufacturers are having difficulty generating profit from their LCD manufacturing activities as prices continue to collapse. Without IVO holding hands with some other larger manufacturer it will be a matter of time before it will be forced to. It will be interesting to see if a LCD joint venture will be successful. LG.Philips LCD, a joint venture between LG Electronics and Philips Electronics has recently been bleeding money. Philips has also announced that it will be pulling out of the joint venture starting July 2007. IPS Alpha, a joint venture among Hitachi, Toshiba, and Matsushita with Toshiba slowing becoming a non-essential partner. Toshiba and Canon has joined together to develop SED technology keeping Toshiba busy. Canon has bumped into legal issues with Nano-Proprietary. It will be interesting to see how the joint venture between BOE and SVA-NEC ends up.

Source: Taipei Times

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