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Tuesday, February 03, 2004
Pioneer to acquire NEC's plasma display businesses

Pioneer and NEC jointly announced an aggreement in which NEC will transfer to Pioneer all the shares NEC holds in its subsidiary, NEC Plasma Display Corporation, and all the intellectual property rights NEC holds in relation to plasma displays.

In recent years Pioneer has been improving its business structures, reflecting its "select and focus" management policy, and one of its most important management strategies has been to further expand the plasma display business as a core of its current businesses.

NEC has been developing its businesses, focusing on two core domains of integrated IT/network solutions and semiconductor solutions, and is advancing strategies that fit the distinctive characteristics of these two business domains. Regarding NEC's display business, although strong growth is expected in displays for TV set use, substantial funding is required to expand growth. Taking this into consideration, NEC in line with its promotion of policies to find external capital for new growth in the industry examined the possibility of creating an alliance aiming for large-scale advantages to develop business.

In this business environment, Pioneer and NEC, which both independently develop and produce plasma displays, found that their respective technologies are familiar, and came to the conclusion that the integration of the highly-developed technologies and production capabilities of the two companies would enable them to demonstrate the maximum of their expertise and take the lead in the market, which will help meet the ever-rapidly increasing demand for plasma displays worldwide.

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