Japanese electronics maker Sharp Corp is in talks with Chinese rival SVA for joint production of liquid crystal display panels in China as a stronger yen has put pressure on earnings of the firm and other Japanese panel makers, the Nikkei business daily reported on Saturday.
Sharp, the world’s No. 3 LCD TV maker, and SVA are also considering another tie-up plan, in which the Japanese firm will sell its old generation production facility at its plant in Mie Prefecture to SVA for around ¥100 billion ($1.1 billion) and then outsource the production to the Chinese firm, the Nikkei said.
But SVA seems to favor the plan to set up a production joint venture in China, since it would be better positioned to learn advanced technologies from Sharp and save investment costs, the paper said, without citing sources.
Earlier this month, Sharp fell to a quarterly loss and warned for its first ever annual operating loss, battered by steep price falls for flat panel TVs and stronger yen. A Sharp spokesman said there was no such facts as reported. (Reuters)