Hitachi Ltd. and IBM Corp. of the United States have reached a framework agreement to form a comprehensive tieup in the field of information technology, the two companies announced Tuesday.
Hitachi and IBM are contemplating mutually supplying "next-generation information-system equipment" in addition to the components that would make up the core of such systems, Hitachi said in a statement.
Through their strategic tieup, the two major computer manufacturers aim to realize the speedy development of technology and timely supply of products to the market, while cutting back on development costs and improving production efficiency.
The partnership would enable Hitachi to broaden its product range and upgrade technology, while strengthening Hitachi's presence in the global market, Hitachi said.
The two companies are expected to complete the details of the tieup by the end of this year, a spokeswoman for Hitachi said.
In 1994, Hitachi formed a partnership with IBM over the supply of computer chips, which ended last year. The new tieup in information technology broadens cooperation between the two firms, the spokeswoman said.
IBM and Hitachi have strong positions in the global market of mainframe computers, but they are faced with low profitability from the business due to a recent price competition.
IBM is the biggest maker of mainframe computers in the world, with a market share of over 70 percent. Hitachi comes in second with more than 10 percent.
Last autumn, Hitachi announced that information system services for clients will be the company's core business, a major shift from its conventional strategy focusing on products.