The Japanese electronics companies now aim to seal an official contract by June and set up the joint venture, which will make and sell large liquid crystal display panels, by March 2010, they said in a joint statement.

Corning, the biggest maker of glass for flat-panel televisions, will eliminate about 3,500 jobs this year after fourth-quarter profit plunged 65% on slowing demand for TVs and computer monitors.

Samsung Electronics is set to invest some 2.2 trillion won in LCDs in 2009 –one trillion won in maintenance of facilities and 1.2 trillion won for expansion of the existing eighth-generation 8-2 production facility.

LG Electronics, a major manufacturer of mobile phones and flat screen televisions, swung to its first net loss in seven quarters, hit by falling prices for TVs and a hefty price-fixing fine slapped on its affiliate LG Display.

Sony is considering consolidating its TV operation by eliminating production at one of its two factories in Japan, a company official said Thursday, amid speculation the company is falling into its first annual operating loss in 14 years.

In an effort to revive sagging momentum in key markets, Samsung Electronics decided to replace all eight heads of its overseas units, Wednesday. The sweeping reshuffle is part of the company's efforts to slim down its business structure for bigger profits and greater efficiency, a Samsung Group spokesman said in a briefing at its headquarters in Seocho-dong, southern Seoul.

Apple executives hinted Wednesday that the company might legally contest the multitouch technology found within the Palm Pre.