NEC Corp and Mitsubishi Electric Corp are to set up a 50:50 joint venture to consolidate their production of computer monitors and LCD panels. The firms say the new company, which will go into operation early next year, is necessary to enhance production efficiency and global competitiveness. The two Japanese firms have seen shrinking profits due to intensifying competition with Taiwanese and South Korean rivals who are seizing market share with lower-priced products.
NEC manufactures LCD panels and outsources production of monitors to NEC Home Electronics Ltd which is due to be liquidated later this year as part of a major group restructuring. Mitsubishi Electric also makes panels and monitors at several plants in Japan. Both companies will supply parts to the joint venture, but each will sell the finished products under their own brand names.
