It looks like the Sony, Hitachi and Toshiba deal has finally gone through. These three major companies, together with Innovation Network Corporation of Japan, will form a new entity called Japan Display Inc. This new merger will focus on the small and medium sized display business, where they are hoping to give their South Korean rivals, Samsung and LG, a run for their money.

This deal will give each of the three companies a stake of 10%, while Innovation Network will hold the remaining 70%. This deal was created as all three companies are looking to revive their display divisions in hopes that they will be able to push out display components to the various smartphone and tablet OEMs around the world, although we’re not sure if companies like Samsung and LG will be sourcing from them, unless of course Japan Display Inc manages to push out better and cheaper display components.

Take note that this will only affect their small and medium sized displays, and will not be related to either company’s television division. Hopefully this stiff competition between display manufacturers will result in cheaper parts, whose savings will then by passed on down to the consumer.

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