Sharp Exports Core Panel Technology to China for the First Time

"Father of LCD" Sharp will export the most core panel technology to China. Yesterday, Sharp and the China Electronic Information Industry Group (CEC) reached a related agreement, Sharp provided CEC with high-definition TFT LCD panel and module technology, and established a 8.5-generation LCD panel and mold assembly company with CEC, a joint venture company. The capital was RMB 17.5 billion, of which CEC contributed 92% and Sharp invested 8%.

This is the first joint venture between Chinese and Japanese companies in the liquid crystal panel field. The analysis pointed out that with the successive landing of Japanese and Korean panel projects, competition in this industry will become increasingly intense.

Sharp Rethinks "Big Business Diseases"

Sharp related sources disclosed to this reporter that Sharp and CEC's joint venture company plans to start construction in Nanjing in August this year. The investment date is scheduled for June 2015, and the production capacity will reach 60,000/month, mainly for televisions and computer monitors. And tablet PCs provide high-definition LCD panels and modules, Sharp has the right to purchase the joint venture company to produce competitively-priced, high value-added LCD panels.

At Sharp's annual shareholder meeting just held this week, Takahashi Hiroshi, the newly appointed head of Sharp, thinks that Sharp's current financial difficulties are "caused by the disease of large companies, characterized by arrogance, conceit, self-destructiveness, and mental decline. Without customers, Sharp decided to "change everything" to treat the company.

The cooperation with CEC is also regarded as a reflection of Sharp's change strategy. Sharp said that he is considering importing IGZO technology to joint venture companies to produce small and medium-sized LCD panels. IGZO is Sharp's original low-power new LCD technology. In addition to his own home, Sharp will also sell to Apple and other companies.

Korean companies have taken the first step

This reporter learned that the current cooperation project is waiting for the final confirmation of the relevant departments.

Although the latest generation of Japanese high-end line panels has finally emerged in China, South Korean companies represented by Samsung and LG have taken the lead. Samsung's project in Suzhou and LG's project in Guangzhou will gradually enter the production phase this year and next.

Industry perspective

Zhang Bing, Director of Research at China Display in the industry with excess capacity or normal status, believes that China's domestic demand is huge. Japan and South Korea’s panel giants have to plan for production capacity, and the tariffs on LCD panels have been increased from 3% to 5%. It does not rule out a further increase to 8%. Not setting up a factory in China means completely losing competitiveness.

For the domestic panel companies represented by BOE and China Star Optoelectronics, the future competition will further intensify. “Only through innovation to enhance competitiveness, can we survive through comparative advantages”, Zhang Bing pointed out that excess capacity will be The normality of an industry.