Seiko, Sanyo Merge LCD Operations

Seiko Epson Corp. and Sanyo Electric Co. said Wednesday they would merge their liquid crystal display panel operations to counter price competition and rising development costs.

The displays, known as LCDs, sharpen the images shown on televisions, mobile phone handsets and other screens.

Seiko Epson — also known as Epson — will own 55 percent of the joint venture the companies will form on Oct. 1. Sanyo will own the remainder.

The new new company will focus on small and mid-sized LCDs, or those mainly used in mobile phone handsets, digital still cameras and automobile electronics.

Japanese electronics maker Sharp is believed to control about 60 percent of the global LCD TV market. Last year, Japan’s Sony and South Korea’s Samsung Electronics agreed to set up a US$2 billion joint venture with Samsung Electronics Co. of South Korea to develop LCD panels.