Canon acquired Toshiba SED TV factory

Canon has announced it will buy Toshiba's flat-screen joint venture project to resolve a patent dispute with Nano-Proprietary Inc. in America.

Canon will own the part established by Toshiba in 2004 to develop the SED TV screen (surface-conduction electron-emitter display), to compete with electronics firms. Giant appliances like Samsung Electronics and Matsushita Electric Industrial Co. Ltd.

This action is intended to appease the Texas-Proprietary firm based in Texas. The company filed a lawsuit against Canon for violating the 1999 technology copyright agreement with Canon. Toshiba contributes 50% to the screen manufacturing joint venture company with Canon called SED Ltd.

Chairman of Canon Fujio Mitarai Group (left) and Toshiba Group President Tadashi Okamura.Photo: Reuters .

However, this joint venture may pose a greater risk to Canon's future - the world's leading name in digital cameras and printers. Canon is hoping that the new SED display business will bring new mainstream revenue, as the company predicts its core product market demand (printers and cameras) "cooling", as well. as prices are falling sharply.

SED TV screens will bring brighter images and consume less energy than current flat-screen TVs like LCD and plasma. However, technology experts predict that this product may face competitive pressure on prices.

" We do not expect much of SED being able to pass LCD and plasma TVs, " said Ryohei Katsura, an analyst with Mizuho Securities Co., in a statement earlier this month.

In addition, Canon said it plans to build a plant worth 180 billion yen ($ 1.49 billion) this year in Toshiba-owned fields in Himeji, western Japan for mass production of screens. This image is being reviewed.

Canon and Toshiba have delayed the launch of SED TVs from the end of March last year to the fourth quarter of 2007 to bring more competitive prices and cool down the price war that is too high. " Without a big new production plan , " Canon may have to "revise its growth to replace SED, " Katsura said.

Canon, which is about to announce its seventh year in a row, hit a fourth-quarter business result by the end of this month, saying the company's net profit doubled thanks to printer and copier consumption strong.

Canon said it will produce this screen in a smaller number than it could launch in Japan, the market still plans to release in the fourth quarter as expected.

Although after the acquisition of all SED ltd. Above, Toshiba no longer invested in a joint venture, but it will buy monitors from Canon and sell SED TVs under Toshiba brand while Canon produces its own TVs. Some analysts believe that changing this business plan will benefit Canon shareholders.

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