Sony Corp. (6758), Toshiba Corp. (6502) and Hitachi Ltd. (6501) agreed to divest their liquid-crystal display businesses to a government-backed fund amid mounting competition from South Korean and Taiwanese producers.
Innovation Network Corp. of Japan (INCJ) will own 70% of Japan Display K.K. after an investment of ¥200 billion. Sony, Toshiba, and Hitachi will divide up the remaining 30%. Japan Display will use the infusion of capital to construct new display production facilities.