Toshiba, IBM Japan Set Plant for Large LCDs

Toshiba Corp. and IBM Japan Co. announced today they will launch a 50-50 joint venture in November to manufacture large-sized, high-resolution color liquid crystal displays--key components in popular computer terminal screens.

The two companies have developed 14-inch, high-resolution color LCDs in a joint research and development program begun in August, 1986, the companies said. They said high-resolution color LCDs are suitable for use in workstations, personal computers and other office automation equipment.

The two companies said the new firm, Display Technologies Inc., initially capitalized at $143 million, will be headquartered at Toshiba’s factory in Himeji, 375 miles southwest of Tokyo.

The project will combine Toshiba’s production technology and IBM’s capabilities in computer technology, the announcement said.

The new company will invest $105 million to build a production facility, starting in March, 1990. The factory is scheduled to start operations in April, 1991.

The factory will start manufacturing 10-inch, high-resolution color LCDs using thin-film transistor technology jointly developed by the two companies.

Larger color LCDs based on the same technology will be manufactured at a later time.