Sat, Feb 05, 2011 - Page 6 News List

Sharp, Taiwan’s Chimei to partner on LCDs: report

AFP and Reuters, TOKYO

Japan’s Sharp Corp will partner with Taiwan’s Chimei Innolux Corp (奇美電子) to produce LCD panels for television sets, a report said yesterday.

Sharp will provide Chimei with technology for reducing the power consumption of LCD TVs and will outsource production of 20 to 39 inch panels, Japan’s Nikkei Shimbun said.

Meanwhile, Sharp will provide panels of 40 inches and larger to Chimei, the financial daily reported.

The two companies have already signed a deal on the technology transfer and plan to start supplying panels to each other by the end of this year, the report said.

The move will help Sharp to reduce costs and meet requests from TV manufacturers to cut prices, it said. A Sharp spokesman declined to comment on the reported tie-up plan.

Sharp shares rose on the Tokyo Stock Exchange in the wake of the news, up 2.6 percent shortly after opening and closed 5.3 percent higher at ¥879.

Shares in Sharp also jumped after an industry source told Reuters it is negotiating LCD panel supply deals with Samsung Electronics Co of South Korea.

“The majority of Sharp’s flat panel demand comes from the domestic market and a deal with Samsung is a big surprise which could lift its bottom line,” said Naoki Fujiwara, a fund manager at Shinkin Asset Management.

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