Seiko Epson Corporation and Sony Corporation today 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.

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 ("SMD"), 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.