Toshiba, Panasonic to end LCD pact

Toshiba Corp. and Panasonic Corp. will end their partnership in liquid crystal displays for mobile phones and digital cameras, allowing Toshiba to turn the joint venture into a wholly owned subsidiary, industry sources said Saturday.

Toshiba Matsushita Display Technology Co., set up in 2002, is owned 60 percent by Toshiba and 40 percent by Panasonic, which was known as Matsushita Electric Industrial Co. at the time of the venture's establishment.

Toshiba will buy the remaining equity stake from Panasonic, which will start focusing on larger LCDs for TVs, the sources said.

Prices of LCDs have been falling in line with growing global competition and the worsening economy.