Japanese electronics giant Hitachi says it will set up a subsidiary to manage its plasma patents as it boosts its presence in the technology in which South Korean rivals have become a driving force.
The unit initially will be fully owned by Hitachi, but the company said it was considering allowing fellow Japanese company Matsushita, the maker of the Panasonic brand, to take a 20 per cent stake. Matsushita and Hitachi, ranked number three and four respectively in the global plasma market, in February joined forces in a bid to cut costs for the technology which was invented in Japan.
The two companies have slipped below top-selling Samsung and LG Electronics, both from South Korea, in worldwide sales of plasma displays - large-screen televisions that offer state-of-the-art resolution. Hitachi has also reinforced its position in plasma displays by recently taking Fujitsu's stake in Hitachi Fujitsu Plasma Display, which had been a joint venture. Fujitsu pioneered flat screens more than 30 years ago.
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