Rebecca Kuo, Tainan; Adam Hwang

 

Sharp and Foxconn have signed an agreement to establish a joint venture in Taiwan by the end of 2011, with each to hold a 50% stake, mainly for joint procurement of components for LCD TV panels to minimize costs in order to compete against South Korea-based vendors, according to Japan-based media Nikkei.

Joint procurement will include glass substrates and color filters (CF), the report indicated. Through the joint venture, Chimei Innolux (CMI), an affiliate of Foxconn, will provide Sharp with TV panels of 20-40 inches, while Sharp will supply 60-inch and larger panels for CMI to minimize production costs, it added.

In line with the exchange in panel supply, Sharp has transferred energy-saving panel technology to CMI and will appropriate part of in-house capacity for making small- to medium-size panels used in smartphones and other types of terminal devices.