Royal Philips Electronics and Toppoly Optoelectronics Corporation of Taiwan have announced they have signed a binding letter of intent to join forces in mobile displays by merging Philips' Mobile Display Systems (MDS) business unit with Toppoly to create a leader in mobile display technology. The company will be named "TPO".
Upon completion of the transaction, TPO' s principal shareholders will be Compal Electronics Inc. (of Taiwan): 25.1%, Philips: 17.5%, and UniPresident Enterprises Corp. (of Taiwan) with 3.5%.
TPO aims to be one of the world's leading solution providers in the mobile display industry by combining Philips' and Toppoly's respective strengths and resources. The deal will result in an innovative and highly competitive entity in mobile displays, offering an extensive product and technology portfolio.
Toppoly has state-of-the-art production facilities with substantial production capacity in Taiwan and China for advanced mobile display technologies, such as low temperature polysilicon (LTPS) and active matrix organic light emitting diodes (AMOLED). The company, which successfully pioneered LTPS, has a high performance product portfolio, fast time to market and an extensive customer base of diversified applications.
Philips will contribute its substantial intellectual property portfolio and its advanced technology in cooperation with Philips Research, as well as its long-term relationships with a wide, global customer base and a successful track record in product quality.
"Through this merger, we will create a global industry leader that is innovative and provides sustainable competitive advantages for the long term. By teaming up with MDS, we're strengthening our capabilities to providing the best service to our customers worldwide," said Ray Chen, the President and CEO of Compal Electronics Inc. and Chairman of Toppoly Optoelectronics Corp.
"Toppoly has successfully pioneered LTPS technology in the flat panel industry and continuously developed next generation display technology to capture the increasingly challenging market. By combining our respective strengths, we will create leadership in the mobile display market", said Mr Harrie Brunklaus, Senior Vice President of Philips and CEO of Philips Corporate Investments.
The transaction will be conditional upon regulatory approvals, and is expected to be completed in the first half of 2006.