Hitachi and Matsushita strengthen their relationship with cross-supplying plasma panels
Hitachi, Ltd. and Matsushita Electric Industrial Co., Ltd. announced on Thursday that the two companies agreed to build upon their plasma TV partnership. The agreement holds that the two companies will supply each other with plasma display panels.
With the new agreement, Panasonic maker Matsushita will begin supplying Hitachi with 103-inch plasma panels, and Hitachi will supply Matsushita with 85-inch plasma panels. The former will take place before the end of fiscal 2007, while the latter will take place next business year.
Hitachi and Matsushita has formed a previous agreement in February 2005 to partner up in different areas of plasma TV development. The wide-ranging partnership included research and development, production, marketing, and intellectual property. The new agreement is strictly for cross-supply.
Measured by the standards of the flat-panel display market, larger screen size plasmas are growing at a high rate. Both companies agree that collaboration will allow them to grow and expand their flat-panel business operations by cross-supplying and sharing development assets.
Hitachi has always held a big share in the plasma market by being the first company to develop the first 1080 42-inch and 55-inch plasma. Panasonic maker Matsushita developed the world's largest plasma TV, sizing at 103-inches.
To compete against the LCD TV market, which is able to produce larger screen sizes at cheaper prices, plasma makers are prompted to make closer ties. Plasma TVs, of recent, have been slowly losing ground on the 40-inch-and-larger panel market.
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