OSAKA -- NEC Corp. and Sanyo Electric Co. have agreed to collaborate in the production of semiconductors for liquid crystal displays used in personal computers, the two major Japanese electronics makers have announced.
Sanyo, based in Moriguchi, Osaka Prefecture, plans to begin building integrated circuits to drive thin-film transistor LCDs by the end of the month, they said Thursday.
Sanyo will initially supply NEC with TFT LCD drivers and begin selling them under its own brand name in the fall, according to the agreement.
NEC controls 30 percent of the TFT LCD driver global market, estimated to be worth 110 billion yen. NEC, which had been looking to further increase its output of TFT LCD drivers, approached Sanyo with the collaboration proposal.
NEC will provide design and manufacturing technology for TFT LCD drivers to Sanyo, the two companies said. Sanyo will begin production of 2 million units per month and hopes to earn 10 billion yen in annual sales within two years.
TFT LCD drivers effectively control computer screens, according to the companies.
Demand for the drivers has been close to outpacing supply since last spring due to large orders from personal computer manufacturers, particularly notebook computer makers, they said.