TMDisplay (Toshiba Matsushita Display): Toshiba To Take Full Control

Reuters, Tech Radar: TMDisplay is short for Toshiba Matsushita Display. The company is a joint venture between Toshiba and Panasonic (Matsushita is no more) and manufactures small/medium-sized LCDs. Toshiba is planning to take full control over TMDisplay. Currently Toshiba has 60% of the LCD joint venture with Panasonic owning the rest.

Toshiba will be buying out Panasonic’s equity stake for billions of yen. TMDisplay is expected to announce an operating loss of JPY30 billion on sales of JPY270 billion for the financial year ending at the end of March. Even with prices dropping rapidly and weak demand, Toshiba wants 100% of TMDisplay. By fulling integrating a small/medium-sized LCD manufacturing plant, Toshiba will be able make decisions a bit faster.

Panasonic, with several billions of yen in its pocket, will be able to focus on larger FPDs (flat panel displays). But Panasonic will still have a foot in the door of a small/medium LCD manufacturing company that it has a joint venture with Hitachi.

After taking full control, Toshiba plans to decrease production of a-Si (amorphous silicon) TFT LCD panels and focus on higher-margin LTPS (low temperature polysilicon) display panels.

According to DisplaySearch, TMDisplay captured a 10.3% share of small/medium LCD shipments in 2008, quite a bit behind #1 Sharp with 20.2% share.

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