Sharp No Longer Offers Samsung LCD Panel, Samsung Orders LGD

- Jan 31, 2020-

According to Bloomberg, quoting the Korean media "Korean Daily", a source said that Japanese panel maker Sharp has notified South Korean Samsung Electronics that it will no longer supply TV LCD panels to Samsung Electronics since 2017 . In response, Samsung has decided to shift to a single LGD display to fill the demand for LCD panels in order to fill the gap in LCD panels.

According to reports, Sharp has provided Samsung with about 4 to 5 million TV panels each year, accounting for 10% of Samsung ’s total demand. Today, after the establishment of Hon Hai Group, Sharp is almost determined to enter the TV production market through Sharp. Because previously, "Nikkei" reported that Hon Hai and Sharp are considering investing 800 billion yen (about 48 billion yuan) to build a large LCD TV panel factory in China. It also hopes to combine Hon Hai's financial resources with Sharp's technology to further enhance competitiveness and counteract competition from Korean and Chinese panel makers, which are expected to mass-produce in 2019. It is just that Hon Hai did not respond positively to this.

Sharp stock price has continued to rise after Hon Hai Group's investment in shares. At the opening on the 14th, it once hit a price of 247 yen per share, which was almost double the stock price compared with the historical low of 87 yen per share in June 2016. Although, analysts estimate that Sharp will still have an annual consolidated loss of 41.8 billion yen (about 2.5 billion yuan) for the 2016 fiscal year ending March 2017. However, in the face of Sharp's "low-end rebound", Japanese investors still have expectations. As for the opening of Samsung Electronics on the 14th, it also maintained a strong pattern. During the session, it surged to 1.778 million won (approximately 10,500 yuan), an increase of 0.23%.