Lcd Enterprises Cooperate To Overcome Difficulties

The world's semiconductor memory and liquid crystal display (LCD) enterprises face great trouble due to the falling prices and the poor sales of PC and TV. In order to survive and play synergy, these companies begin to cooperate with local or overseas competing companies.

According to the industry news, the South Korean giant mentioned in the report refers to Samsung Electronics and LG Display which occupy half of the world's LCD market.

The senior management of Sharp has identified to cooperate with a Chinese subsidiary of Hon Hai's Foxconn. The two sides will jointly invest in building legal person in Taiwan, responsible for the production of LCD and TV panels and parts.

Sharp and Foxconn CMO will jointly produce glass substrates, color filters, etc. Sharp provides technical support to the CMO. CMO provides Sharp TV panels from 20 to 40 inches. Sharp will mainly focus on the production of the display above 60 inches for 10-generation production line and the small and medium displays for 8-generation equipment for.

In the first quarter of this year, in large LCD market, LG Display's market share is 25.9% Samsung accounted for 25.5% 16.5%. Taiwan accounted for AUO. CMO and Sharp were 15.5% and 7.8%. Chi Mei and Sharp's market share totaled 23.3%.

Analysts of the industry said: "Chi Mei and Sharp should be aware of that now it is very difficult to go alone. It is expected some time in the future acquisitions and mergers within the industry will be more active."

On the other hand, Toshiba, Sony and Hitachi also decided to build three partner companies to compete with Korean companies in smart phones and other medium and small display areas. It is reported that three companies are to obtain about 200 billion yen from private funds to add production line.

In the first quarter, the market share of Samsung monitor in this area is 14.7%. Sharp is 12.9%. CMO is 9.9%. Toshiba is 7.2%, LG Display is 5.8%. Sony is 5.7%. Hitachi is 5.6%. AUO is 5.5%. The total market share of Toshiba, Sony and Hitachi three companies is 18.5%, which is absolute competitive.

In addition, Samsung Electronics and Sony co-constructed the S-LCD Corporation. In Suzhou, China, Samsung and the Chinese well-known enterprise TCL launched a SSL factory. Samsung Electronics, Suzhou Industrial Park, TCL respectively hold shares of 60%, 30% and 10%. They invest 3 billion dollars to build 7.5-generation plant. Since2013 they can produce 100,000 LCD panels a month.