Toshiba and Sharp agree to buy LCD TV related components from each other

With the LCD flat panel HDTV market currently booming, competition is fierce between rival manufacturers and the need to drive manufacturing costs down is highlighted. To meet the need for better LCD TVs at lower costs many of the largest LCD panel makers are looking to team up and invest heavily in the manufacture of LCD panels.

Toshiba and Sharp announced a new alliance today where Toshiba Corp will purchase 40% large LCD panels from Sharp. Sharp is currently building the largest LCD manufacturing plant in the world in Japan.

Under the agreement, Sharp will purchase 50% of its needed semiconductors from Toshiba for use in its LCD TVs. Reuters quotes Toshiba President Atsutoshi Nishida from a news conference as saying, “It would be difficult for one company to do everything on its own. It's necessary to join forces with others that have complementary strengths.”

Nishida went on to say that he hopes to grow business between Toshiba and Sharp to about 70-80 billion yen, or about $618 million USD to about $706 million USD. The two companies will also be able to have a steady buyer for their components to help maintain development and sales volume.

This isn’t the first big announcement this week in the LCD TV world. Earlier this week DailyTech reported that Matsushita and Hitachi were in talks on a multi-billion dollar deal where Matsushita would take over an LCD manufacturing joint venture it has with Hitachi.

Toshiba announced earlier this month it would not bring OLED TVs to market in 2010 as promised.

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