The Nikkei and the Japan Times report that Foxconn has decided that Sharp should stop supplying panels to Samsung’s TV business as the companies have, apparently, been unable to agree on pricing. As a result, Samsung is reported to be looking for another source of panels, as it has been cutting back its own capacity for LCDs as it moves to increase its capacity for OLED production. The Chosun Ilbo in Korea said that Samsung held an ’emergency meeting’ to discuss the situation and that Sharp has been supplying four to five million panels per year to Samsung for TVs.
Nikkei reports that Samsung is even talking to LG Display about supply, although it is also widely expected that Samsung will expand its purchases from Chinese vendors and AUO. None of the companies has gone on the record to discuss the issue.
Analyst Comment
Recently, industry sources have suggested that as much as 75% of Sharp’s production from the Sakai Display Products plant, so Foxconn is clearly sure that it will be able to boost its own TV business to absorb panels from the plant. (BR)
The Sakai Display Products Site
