A rapid realignment of the liquid crystal display market is under way, with Toshiba set to buy Panasonic’s stake in their lossmaking LCD joint venture.

Toshiba is in talks to buy Panasonic’s 40 per cent stake in Toshiba Matsushita Display Technology, the world’s second-largest maker of small LCD panels used in devices such as mobile phones, according to a person close to the discussions. The price is expected to be several billion yen.