The liquid crystal display or LCD panels seem to quickly become the next big thing on the market, so the electronics industry’s main players have already started thinking of new strategies and alliances. For example, only a few days ago two announcements came to prove the previous affirmation: first of all, Sony Electronics announced that it decided to close its rear-projection television line and to focus entirely on LCD sets; secondly, Toshiba and Sharp announced that they would become partners.

So, in a similar move to Toshiba and Sharp’s decision, three other major tech companies announced recently that they would partner. Canon, Panasonic and Hitachi agreed to join forces in a wide-ranging collaboration that will make them share the cost, burden and benefits of development and production of brand new flat-panel displays.

Under the terms of the initial agreement, Panasonic and Canon said they would each buy a 24.9 percent stake in Hitachi Display, which is a wholly-owned subsidiary of Hitachi that already produces small and medium size LCD panels. According to the three companies, the transaction should be completed before March 31, 2008.

Hitachi stated that through this move it hoped to accelerate the development of cutting-edge LCD technology, while Canon said it hoped this alliance would help it to shorten development time and gain a stable supply of LCD panels for its range of digital single-lens reflex cameras.

According to the three companies, the recently announced alliance represents the first step of a series of planned moves that will eventually have Canon take control of Hitachi Displays and Panasonic of IPS Alpha Technology, a joint-venture in which Canon and Toshiba also hold stakes, although the latter is said to be in talks to exit the venture.

Tech companies tend to join forces when it comes to LCD, because they can share the high costs that characterize this expansive new technology. According to research firm DisplaySearch, global LCD TV sets sales will likely grow 85 percent to $91 million by 2010.