TOKYO, Japan—Seiko Epson Corporation and Sony Corporation have announced that they will begin discussions about an alliance in the field of small and medium-sized liquid crystal displays (LCDs), including the transfer of a part of business assets of Epson to Sony. The parties hope to enter into a legally binding definitive agreement by the end of June 2009.

To date, Epson Imaging Devices Corporation, a subsidiary of Epson, has implemented a series of restructuring measures in its small and medium-sized LCD business. At the same time, Epson Imaging has endeavored to shift its product portfolio while developing original high-definition and ultra-wide viewing angle technologies, based on its amorphous silicon TFT and low-temperature polysilicon (LTPS) TFT technologies. An alliance with Sony would enable Epson Imaging's LCD technology and amorphous silicon TFT production capability to be fully utilized and broader customer demands to be satisfied.

In its small and medium-sized LCD business, Sony is focusing on LTPS-TFT LCD, and in order to accelerate the development and commercialization process, Sony has also decided to consolidate its resources within its subsidiary, Sony Mobile Display Corporation, resulting in a unified operation containing development, design and production to realize a stronger business structure. Through the contemplated alliance, Sony aims to increase the competitiveness of its small and medium-sized LCD business by incorporating Epson's wide range of technologies, in particular Epson Imaging's amorphous silicon TFT technology, and LCD product designs and production capabilities.