Tokyo — Toshiba said Wednesday that it has reached a transfer agreement with Panasonic to acquire all of Panasonic's shares in the jointly owned LCD and OLED panel production operation called Toshiba Matsushita Display Technology (TMD).
Upon completion of the transaction on April 28, TMD will become a wholly owned subsidiary of Toshiba Group and will change its name to Toshiba Mobile Display.
Established in 2002, TMD produces small- and medium-sized LCDs for products, including mobile phones, portable PCs and in-vehicle displays.
Toshiba said that acquiring Panasonic's stake in TMD will allow it to “further accelerate decision-making and promote comprehensive restructuring of TMD's business.”
Toshiba said the economic downturn, which has hurt demand for small- to medium-sized displays, combined with declining prices for LCD panels, is forcing it to restructure certain operations under its previously announced Action Programs to improve profitability. TMD is now implementing restructuring initiatives in its LCD business, including closing certain manufacturing lines, the companies said.
Going forward, TMD expects to move its focus towards OLEDs “as an engine for growth and to enhance its display business in the medium- to long-term,” Toshiba said.