Sharp and NEC have announced a joint venture to develop 8K resolution, 5G-enabled display solutions for future markets.
On Wednesday, the companies issued a joint statement outlining the venture, in which NEC Display Solutions, Ltd. (NDS) will merge with Sharp's main business.
Financial details were not disclosed. However, NEC will transfer 66% of NDS ownership to Sharp and will retain a 34% equity stake.
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The companies say that the venture "will allow both companies to build upon their strengths and address the visualization needs of their global customers."
In particular, both Sharp, headquartered in Osaka, and Tokyo-based NEC are heavyweights in the display, visual technology, and digital signage markets, and are looking towards future business opportunities in the 8K-Ultra High definition space.
With the upcoming rollout of 5G networks and our increasing reliance on streaming services that rely on high-capacity bandwidth, Sharp and NEC plan to work together on next-generation screen technologies.
Fujikazu Nakayama, Senior Executive Managing Officer of Sharp said the partnership is "mutually complementary," adding that the merger should result in greater economies of scale, business expansion, growth, and a boost in sales.
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"This joint venture between Sharp and NDS will bring even greater value and benefits to customers and partners by extending our state-of-the-art product portfolios together with a range of professional service offerings," commented Hisatsugu Nakatani, President of NDS.
NEC-branded products will still be produced and distributed by the joint venture.
The deal is expected to close on July 1, 2020.
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In related news this month, Sharp has launched a litany of lawsuits against Tesla Motors, CHOT, OPPO, and OPPO Japan.
The tech giant alleges that Tesla Japan's electric vehicles are equipped with a communication device that infringes LTE patents owned by Sharp; the Chinese LCD manufacturer CHOT is infringing up 12 LCD patents, and both OPPO and OPPO Japan are using intellectual property related to LTE smartphone communication without permission or licensing.
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