Friday, June 28, 2013: Japan’s Sharp has disclosed plans to enter into a $2.9 billion business alliance with China Electronics (CEC). The new venture will be 92 per cent owned by China Electronics, under which an LCD plant would be set up with a goal of starting mass producing panel displays for televisions, notebook PCs and tablets in 2015, said a report by Reuters.
As part of the venture, Sharp plans to provide CEC with access to its high-definition panel technology for unspecified compensation.
In a press statement, Sharp said: “Along with providing high definition TFT-LCD panels and module technology to the strategic partner CEC, both companies have agreed to operate a plant for the 8.5th generation LCD panels and modules utilising the technology as a joint venture along with investment by Sharp. With commencement of mass-production scheduled in or after 2015, it is assumed that main applications will be for television sets, notebook PCs and tablets. Sharp reserves the right to purchase the price-competitive and high-value-added LCD panels that will be produced at the plant.”
Sharp said it is working on business restructuring with the intent of reducing assets through optimisation of the value chain, and, in the current approach, Sharp will enhance global competitiveness by optimally combining technology, human resources and production for each value chain, such as technology development in Japan, panel planning in the countries or regions close to consumer markets, and production in the countries or regions taking advantage of low production cost infrastructure, respectively.
By combining advanced LCD technology of Sharp with the technology of CEC, Sharp aims to establish a system to provide competitive LCD panels and modules in a stable and timely manner, and steadily grow its LCD business.
Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine
