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Home > News Room > The NEC Group and AVIC International Group Agree to a Capital Alliance to Strengthen the Small and Midsized Liquid Crystal Panel Business

The NEC Group and AVIC International Group Agree to a Capital Alliance to Strengthen the Small and Midsized Liquid Crystal Panel Business


*** For immediate use February 25, 2011

Tokyo, February 25, 2011 - NEC Corporation (NEC; TSE: 6701), NEC LCD Technologies, Ltd. (NEC LCD Technologies) , AVIC International Holding Corporation and TIANMA MICROELECTRONICS Co., Ltd. (Tianma) announced today a capital alliance agreement in order to strengthen the small and midsized liquid crystal panel business.

In July 2011, NEC LCD Technologies will become a joint venture company with the AVIC International Group, who will entrust the management of its liquid crystal panel business to Tianma and take control of 70% of NEC Corporation's shares in NEC LCD Technologies (*). NEC LCD Technologies will continue to be a Japan based liquid crystal enterprise that is focused on small and midsized industrial use liquid crystal panel business. This alliance enables NEC LCD Technologies to combine its world-class technology strength with Tianma's advanced production capacity as part of becoming a leading global company that quickly provides worldwide markets with high quality, competitively priced small and midsize panels for industrial use.

In recent years, the small and midsize industrial use liquid crystal panel market has been expanding for a variety of applications such as broadcasting systems, medical purpose diagnostic monitors, factory computers and outdoor data terminals. In terms of the Chinese market, the preparation of information and communication technologies (ICT) has elevated the demands for industrial use liquid crystal panels.

NEC LCD Technologies will continue doing business with its approximately 2,000 corporate customers throughout the world, as well as operating its Akita factory that produces a diverse range of liquid crystal products for industrial use. Higher volume and larger size products which are not suitable to Akita factory will be manufactured on Tianma's production lines, where NEC LCD Technologies' advanced technologies and high quality lineup of products can be produced and delivered on a greater scale. Furthermore, NEC LCD Technologies and Tianma aim to cooperate across a range of business practices, including the procurement of material, in order to strengthen overall cost performance.

Tianma boasts approximately 30 years of experience in the liquid crystal display field as China's first company to develop and produce liquid crystal products. The company already has 4 state-of-the-art small and midsize liquid crystal display production lines in China (see company overview below) Tianma aims to become a leading global small and midsize liquid crystal panel company by leveraging its exceptional low-cost production strength with NEC LCD Technologies' high quality, highly reliable production and design strength as part of satisfying customer needs in China and throughout the world.

Looking forward, the NEC Group, Tianma and the AVIC International Group will seek to capitalize on this new alliance in order to strengthen business ties between each company and to explore links amongst different fields.

***

Note
*

Shenzhen AVIC Optoelectronic Co., Ltd., a company co-founded by Tianma's parent company, the AVIC International Holding Corporation and AVIC International Shenzhen Co., Ltd., will acquire 70% of the shares that NEC Corporation holds in NEC LCD Technologies and establish a joint venture. The management of AVIC International Holding Corporation's liquid crystal business including Shenzhen AVIC Optoelectronic Co., Ltd. will be entrusted to Tianma.


Press Contacts

NEC Corporation
Kosuke Yamauchi
+81-3-3798-6511
E-Mail:k-yamauchi@ce.jp.nec.com

TIANMA MICROELECTRONICS Co., Ltd.
Liu Chang Qing
+86-755-8622-5886
(Chinese Only)

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