Sharp teamed up with Panda to produce LCD panels against Korean manufacturers

Sharp announced the joint venture plan with Nanjing CLP Panda Information Industry Group (hereinafter referred to as CLP Panda) on June 27. According to the plan, Sharp will establish a joint venture with CLP Panda in Nanjing in March 2014 and start production of the latest energy-saving LCD panel “IGZO” in June 2015. The capital of the joint venture company is RMB 17.5 billion. The proportion of capital contribution is 92% for CLP Panda and 8% for Sharp. Including infrastructure, the new plant will have a total investment of more than 500 billion yen (about 31.3 billion yuan) and will start construction in August this year.

Sharp will jointly produce LCD panels with CLP Panda. Sharp believes that in order to enter China, a huge market with a population of 1.3 billion, the local production model is indispensable.

Sharp plans to combine its cutting-edge technology with the financial strength of CLP Panda to compete with Korean and Taiwanese manufacturers that are one step ahead in the industry. After the establishment of the joint venture company, the global competition in the field of LCD panels is expected to become more intense.

According to the statistics of NPD DisplaySearch in the United States, in the large-size LCD panel market in 2012, South Korea’s LG Display, Samsung Electronics, Taiwan’s Innolux (formerly Chi Mei Optoelectronics) and AU Optronics (AUO) accounted for the first to fourth place. . The combined market share of these four companies is approaching 85%. All four companies are actively investing.

Although Sharp ranked fifth, its market share has decreased year by year, accounting for only 6.7% in 2012. On the other hand, the market share of Chinese manufacturers such as BOE, which was originally ranked lower, has expanded year by year. For Sharp, whose investment is limited due to the decline in performance, cooperation with CLP Panda is one of the few ways to make a comeback. Producing panels in China helps to obtain orders from local manufacturers, and it is also expected to reduce exchange rate risks such as the appreciation of the yen.

The global LCD panel market has undergone great changes in recent years. Most of the Japanese manufacturers that originally dominated the market have already withdrawn from the panel production business. In the field of large panels for television, there are actually only two companies, Sharp and Panasonic. Sharp is preparing to find a way out in the LCD panel market where price competition will become more intense in the future through cooperation with large Chinese manufacturers.

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Features:

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