Hitachi, Canon and Matsushita have formed an alliance in an attempt to dominate the LCD market.

The three companies are hoping that a combined attack will improve each firm's LCD panel business and related technologies.

Each company brings a particular speciality to the table. Hitachi possesses sophisticated liquid crystal-related technologies, including 'In-Plane Switching' that enables better colours and wider viewing angles.

Canon, meanwhile, excels in the camera, printer and medical equipment fields, while Matsushita has an existing global leadership in flat-panel TVs.

Canon and Matsushita will each acquire 24.9 per cent of the shares of Hitachi Displays Company, a wholly owned subsidiary of Hitachi, by 31 March 2008 subject to regulatory approval. Hitachi's stake will drop to 50.2 per cent.

Canon also aims to accelerate the development of organic LED displays by teaming up with Hitachi, which boasts a range of advanced display technologies.

Further developments may see Canon taking a majority holding in Hitachi Displays, and Matsushita taking a majority holding in IPS Alpha, a joint venture held by companies including Matsushita and Canon.