Hitachi and Panasonic Cut Plasma Deal

The two companies will share their big-screen panels with one another in the future, in an effort to keep up with falling plasma prices.

As if the rebranding of displays in the plasma screen TV market weren’t confusing enough, Hitachi and Panasonic entered into an agreement on Thursday that will have the two manufacturers actually swapping panels with one another. The companies already forged a pact in February 2005 to share, production, marketing, intellectual property, and research and design, but now they’ve expanded it to include actual product supplies.

Under the agreement, Panasonic will supply Hitachi with 103-inch plasma panels in fiscal 2007, and Hitachi will supply Panasonic with 85-inch panels in fiscal 2008. Hitachi’s press released cited the surging market for big-screen plasma TVs as the driving force behind the arrangement. While demand is for these cinema-size plasma displays is high, prices are constantly falling, making it difficult for manufacturers to stay competitive. The intent of the cross-supply deal is to drive down cost and boost efficiency for both companies, which will make it easier to bring lower prices to the marketplace.