The recent alliance between Taiwanese manufacturer Foxconn Technology Group and Japan“s Sharp Corp. will likely present a counterweight to Korean liquid crystal display (LCD) makers who have been dom…
The recent alliance between Taiwanese manufacturer Foxconn Technology Group and Japan“s Sharp Corp. will likely present a counterweight to Korean liquid crystal display (LCD) makers who have been dominant players in the global LCD market, according to an industry expert. Foxconn, the world“s largest contract electronics maker, signed an agreement with the Japanese electronics giant to establish a joint venture company in Taiwan, which will be in charge of the LCD TV panel and component business. Further details were not disclosed. According to market researcher DisplaySearch, the move is seen as a strategic play against their Korean rivals. Sharp and Chimei Innolux Corp. had a combined LCD TV panel unit market share of 29.3 percent, which is greater than Samsung and LG Display, said David Hsieh, a vice president at DisplaySearch. This means that the joint venture will be a major player in LCD TV panels. Chimei Innolux, a subsidiary of Foxconn Group, is the world“s No. 3 LCD maker after Samsung Electronics Co. and LG Display Co., both from Korea. Over the past ten years, Taiwanese LCD panel makers have overtaken Japan in production capacity, but have had to deal with strong competition from Korean makers. Meanwhile, with regards to Japanese TV brands, Samsung Electronics and LG Electronics Inc. are in the top positions in the LCD TV market. During previous periods of LCD panel oversupply, Taiwanese manufacturers were more vulnerable than Samsung and LG, which have their own end products with strong brands.