The new company is named TPO. Its principal shareholders are Taiwan-based Compal Electronics, which holds 25.1%, and Philips, which has 17.5%.
TPO said it aims to be one of the world's leading solution providers in the mobile display industry by combining Philips' and Toppoly's respective strengths and resources.
Toppoly boasts advanced production facilities with substantial production capacity in Taiwan and China for advanced mobile display technologies, such as low temperature polysilicon (LTPS) and active matrix organic light emitting diodes (AMOLED).
Philips will contribute its intellectual property portfolio and its technology in cooperation with Philips Research, as well as a global customer base.
As a result of the completion, Philips will report a €28 million pre-tax positive result in the second quarter of 2006, which will be reported as income from discontinued operations.