Omron to acquire backlight business

KOA Corp has agreed to transfer the backlight business from the Display System Division of its subsidiary Tama Electric Co to Omron Corp.

KOA Corp has agreed to transfer the backlight business from the Display System Division of its subsidiary Tama Electric Co to Omron Corp.

A new company will be created as a 100% subsidiary of Tama Electric.

On completion of this corporate division, Omron will acquire all shares of the new company from Tama Electric, thereby receiving all development, production, and sales functions associated with Tama Electric's backlight business along with pertinent employees.

Omron is developing and commercialising backlight units for small cellular phone LCDs by using LEDs as light sources, and by applying proprietary MLA (micro lens array) technology for light control.

Although the market for backlight units for large LCDs, which generally incorporate cold-cathode tubes as a light source, is expected to expand greatly with the spread of large LCD TVs with screen sizes exceeding 30in, a shift to LED light sources is expected in the near future.

For this reason, Omron will acquire the backlight business from Tama Electric.

Tama Electric is highly proficient in the area of large backlight units.

Synergy with Omron's proprietary technology will advance technological differentiation in the backlight market to further expand the business of backlight units and components.

Transfer of the backlight business from KOA to Omron is slated for completion by the end of June this year.

Details such as the name of the new company, location of the headquarters, and capitalisation are still under consideration.

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