Santa Clara, California-based Applied Materials Inc has signed a letter of intent with Japanese company Komatsu Ltd for the formation of an equally-owned joint venture to develop, manufacture and market systems and equipment to make flat panel displays. To form the new company, Komatsu will make an equity investment in Applied Materials’ existing subsidiary, Applied Display Technology Inc to give it a 50% stake in the firm, and Applied Materials will make technology available to the new company under a royalty-bearing licence. The proposed new company, under a new name, will carry forward the business interests of Applied Display, which was formed in December 1991 to develop manufacturing systems for the flat panet display market (CI No 1,809). It is intended that the new company will pursue all appropriate opportunities in the flat panel equipment market, but it will major on products for the active matrix liquid crystal diode display end of the business.
