Sharp and Foxconn form a joint venture for lcd components

Sharp and Foxconn in Taiwan set up a joint venture that will focus on the joint procurement of lcd-components. The two companies want to save costs to better compete with LG and Samsung.

According to Digitimes, the two companies through the joint venture mainly glassubstraten and color filters purchases for the production of lcd’s. In addition, Foxconn, through its subsidiary Chimei Innolux lcd’s with a diagonal screen size of 20 to 40″ Sharp deliver. Sharp in turn to Chimei Innolux panels with a screen size of 60″ and larger. Sharp and Foxconn are each fifty-percent shareholder of the still-unnamed joint venture.

Just as the economies of scale from the joint procurement of lcd components, should also be the mutual delivery of the panels the costs for both companies button. Also, Chimei Innolux as part of the agreement, use of Sharp energy-saving technology for lcds, which may have Sharps uv2a-pixeltechnologie and/or the Quattron-pixelconfiguratie is intended. Sharp will production capacity be cleared for the production of lcds for mobile phones and tablets.

Foxconn was previously in talks with Hitachi for cooperation in the field of lcd production. Eventually, Hitachi to join forces with Sony and Toshiba for the production of small and medium-sized panels. A possible reason for this full Japanese joint venture is the contribution of the Innovation Network Corp. or Japan, an investment fund of primarily the Japanese government. The INCJ invests approximately $ 2.5 billion in the joint venture, while the remaining 30 per cent by Hitachi, Sony and Toshiba is raised.