SEOUL, KOREA - E-Trade Securities said on June 27 a possible alliance between Japan's Sharp Corp. and China's CEC Panda will pose a significant challenge to Korean display panel makers. Earlier on the 26th, major Japanese newspapers including Nikkei reported that Sharp would establish in Nanjing an LCD panel joint venture with CEC Panda and begin production from 2015.

 

E-Trade Securities analyst Jeon Byung-ki said, "Once Sharp combines its technical know-how with China's production efficiency and capital, it will threaten the current leading position of Korean panel makers including LG Display and Samsung Display."

 

According to Japanese reports, Sharp will take a 10-percent stake in the joint venture by investing 30 billion yen (US$307 million) and transfer its IGZO (indium gallium zinc oxide) technology to CEC Panda. Sharp will secure the rights to purchase 50 percent of the output from the Nanjing plant, with an added benefit of earning technology licensing royalties.