On Monday, two newly created juggernauts in the display business, Samsung Display and Japan Display, began operations, each staking a claim to the title of world's largest display maker.

On Monday, two newly created juggernauts in the display business, Samsung Display and Japan Display, began operations, each staking a claim to the title of world's largest display maker.

In one stroke of the pen, Samsung created one of the world's largest display companies on Sunday night, spinning off Samsung Display Co. with its inauguration ceremony. The company has begun business operations, representatives said. Samsung .

Meanwhile, Japan Display also opened for business on Monday, representing the pooled display businesses of Sony, Toshiba, and Hitachi. The Innovation Network Corporation of Japan, a public-private investment fund owned by the government and 19 other companies, holds a 70 percent stake in Japan Display, which is capitalized at 230 billion yen. Sony, Toshiba and Hitachi each hold 10 percent.

Like other component operations, display manufacturing has suffered brutal price competition, to consumers' benefit. U.S. flat-panel TV shipments are for the first time on an annual basis this year, ending an unbroken string of growth since the market began, according to an IHS iSuppli U.S. TV Market Tracker last week. Shipments in 2012 of flat-panel TVs into the American market are forecast to decline to 37.1 million units, down 5 percent from 39.1 million units in 2011.

Last week, Hon Hai/Foxconn said it would invest 66.4 billion yen ($0.8 billion) into Sharp's Gen 10 plant, for a 46.5 percent stake. Sony, the existing partner, not surprisingly pulled out. As part of the deal, Foxconn may acquire the rights to manufacture its own products but label them with the Sharp brand if it chooses, according to a DisplaySearch report.

Samsung Display recorded $20 billion in revenue for all of 2011. The company employs 20,000 employees at five production facilities across the world, which Samsung executives said was the basis for its claim as the world's largest display maker. According to a report, Samsung Display will merge its operations with its mobile display business, shifting its focus to OLED displays.

"A stand-alone Samsung LCD will mean a change in its sales and component sourcing strategies, because its strategy would need to be focused on profitability, rather than supporting the broader Samsung Electronics strategy, so it should maximize its customer base," NPD analysts David Hsieh and Yoonsung Chung wrote in a report issued Thursday. "In this sense, the new company is likely to care more for non-Samsung customers, and act as an independent and neutral LCD and AMOLED supplier."

However, the consolidation will undoubtedly hurt consumers, as a more consolidated manufacturing base will mean less competition and more stable prices - which will benefit the bottom lines of Japan Display and Samsung Display. For its part, IHS predicted lower HDTV shipments into the U.S. this year, as display makers become more cautious.

Samsung said it was prepared to become the world's largest display maker, however. "We will make Samsung Display a well-respected company through continuous efforts to supply a wide variety of customized products that provide great value to our customers," said Donggun Park, executive vice president and head of the former Samsung Electronics' LCD Business, and now chief executive of Samsung Display. "By continually staying one step ahead of our competitors, we can make our company the very best in the display market."

In other HDTV news, Philips shifted its HDTV business to a joint venture, known as TP Vision. The business will be 70 percent owned by Hong Kong-based TPV and 30 percent by Philips, the companies said. TP Vision will develop, manufacture and market Philips branded TV sets.

For more, see PCMag's Best Super Bowl HDTVs You Can't Afford slideshow below.