Cost-Cutting Prompts Sharp-Hon Hai Partnership In Competitive LCD TV Panel Market

Liquid crystal display (LCD) panel manufacturers Sharp Corporation of Japan and Hon Hai Precision Industry of Taiwan formed a joint venture (JV) to compete more effectively in a global market that is increasingly being dominated by South Korean manufacturers. The JV will enable them to share production facilities and cut costs. This could prove vital at a time when growth in the large LCD panel market has been slowing down. With Sony and Toshiba also considering combining some of their LCD panel operations for competitive reasons, it is clear the market is beginning to coalesce around a handful of large price-driven suppliers.