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Sharp to Procure TV Panels from AUO, CMO
(Taiwan Economic News Via Thomson Dialog NewsEdge)Taipei, May 18, 2006 (CENS)--Taiwan's top-two thin film transistor-liquid crystal display (TFT-LCD) panel makers, AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. (CMO), are expected to win increasing orders for large-sized TV panels from Sharp of Japan, according to industry sources
Japanese newspaper Sankei Shimbun recently reported that Sharp plans to further upgrade the production ratio of over-37-inch (including) LCD TVs, from 14% of 2005 to 26% this year, so as to boast revenue and profits amid falling panel prices
Sankei Shimbun said that the LCD TV prices fall at an average pace of 30% per year and Sharp also plans to soon adjust down its LCD TV prices by 20% to 30% to so as to elevate its share of the market for over-37-inch products
Sharp forecasted that the global LCD TV demand is expected to reach 42 million units this year, and the company aims to maintain its No. 1 position by selling six million units
To reach the goals, Sharp is actively boosting its brand image in overseas markets. Last year, Sharp shipped a total of 4.3 million LCD TVs, including about 1.9 million units for the domestic market in Japan and 2.11 million units overseas. This year, Sharp hopes to expand its overseas sales ratio to 60%
Industry insiders explained that the production capacity at Sharp's six-generation (6G) panel plant can hardly meet the high volume-expansion goal set by the company, forcing the firm to outsource 26- and 32-inch panels from Taiwan suppliers, especially leading suppliers AUO and CMO
Sharp has secured panel supply from Quanta Display Inc., No. 4 panel maker in Taiwan, and is expected to include AUO and CMO as new suppliers. Sharp's monthly TV-panel procurement volume from Taiwan is expected to double to about 200,000 panels from about 100,000 currently, as the Japanese company would boost its exports to the North American and European markets
Sharp began procuring TV panels from Quanta Display in March at an average volume of 100,000 units per month. AUO will formally merge Quanta Display in October.
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