Just as announced over a year ago, Japan Display, a merger of the LCD production from Sony, Toshiba, and Hitachi is now fully operational. The new company which was formed from the merger of the 3 companies LCD business, due to high competition from foreign entities like LG and Samsung was backed by a ¥230 billion ($2.8 billion) injection from the Japanese government which has a 70% stake in the company. The remaining 30% is than divided equally between the three companies with each receiving a 10% stake. With a 6,200 employee workforce, Japan Display will focus on small and medium sized LCD production.

“We aim to become a global leading company born in Japan,” Japan Display President Shuichi Otsuka said. “We will make quick decisions with the flat organization.”

Japan Display will also be structured quite differently than the previous three corporations with seven divisions, consisting of:

• Research and Development Division
• Mobile Business Division
• Automotive/C&I Business Division
• Sales Division
• Production Division
• Procurement Division
• Quality Assurance Division

Due to the majority shares being held by the Japanese government, there will be no “vice president or executive managing director” Otsuka said, the President of Japan Display.

Discuss:

Did Sony do the right thing by spinning off their LCD production business?

[Via TechOn]