What They Say
The Nikkei reported that Sakai Display Products (the LCD business of Sharp) has launched a legal action to stop Corning’s alleged sale of glass to third parties without SDP’s consent in violation of a contract between the two companies. According to the complaint, the agreement lets Corning sell to other customers only if it has extra capacity after it has met SDP’s needs. But Corning has supplied glass to other panel makers without meeting SDP’s needs first, the firm has said.
The filing also accuses Corning of violating a contract with SDP by making glass in unapproved sizes.
The deal was made because Corning rents the factory from SDP, Nikkei said.
What We Think
This kind of tied relationship, even within companies, is the cause of a lot of tension, but it’s surprising for this row to become public. One wonders whether there are sub-agendas here? (BR)
Corning Sakai
