As the world is in process of transition to HDTV (high-definition television), the demand towards high-quality screens, such as LCD (liquid crystal displays) or plasma, rises and in order to fulfill the demand on time and on cost manufacturers have to team up in order to deliver better and more affordable solutions.

JVC (Victor Company of Japan) and Funai Electric have reached and signed a basic agreement to implement a wide-ranging business alliance between the two companies centered on LCD equipment in the video equipment business sector.

Under this alliance, the two companies will operate cooperative business, including joint development, mutually contracted development, joint production and mutually contracted production in the display equipment and multifunction video equipment businesses. The partnership aims to effectively use and mutually complement the management resources of both companies, to capitalize on economies of scale through business cooperation, and to strengthen their management infrastructure in the video equipment business.

JVC and Funai Electric believe that this business alliance will contribute to strengthening the business infrastructure and competitiveness of their video equipment business as part of the larger framework of the capital and business alliance and management integration of JVC and Kenwood Corporation, which is already under way.

Late in 2007 several other Japan-based companies, including Canon, Hitachi and Matsushita Electric Industrial (the company primarily known for its Panasonic-branded devices) agreed to form the alliance that will heavily invest into development of advanced in-plane switching (IPS) panels for liquid crystal displays (LCDs).