Sharp Display Products emerges from Sharp / Sony joint venture

Posts with tag panels

Come one, come all to the flat-panel production cutting party. Just look at these spectacles on stage -- AU Optronics, Sharp, LG, Panasonic, Sony, Toshiba, Hitachi, et al. We'd say that this is getting downright bizarre, but we suspect that's plainly obvious by now. As the output-cutting bandwagon continues to take on passengers, LG has too decided (purportedly, at least) to downsize its plasma panel output starting in 2009. Potentially more striking is the assertion that it may "completely halt production of its 32-inch panels," which are losing it money hand over fist. The interesting bit is that nearly half of LG's PDP output is at the 32-inch level, so unless it starts digging into another size, it'll have quite a bit of equipment (and employees, we imagine) sitting idle. And to think -- things looked so much brighter just three years back.
Man, what a difference a
There may have been a long shot in Hades that Sharp and LG would navigate their way out of paying a full $120 million / $400 million fine for their respective roles in a recent LCD price fixing bust, but that shot has apparently failed. It was announced this week that both firms would indeed be sentenced to pay the full fine "for their role in a price-fixing scheme that forced millions of US consumers to overpay for gadgets using liquid-crystal displays." The other culprit, Taiwan's Chunghwa Picture Tubes, has already agreed to plead guilty to criminal charges and will be sentenced in January. Happy holidays, huh?
Chi Mei Optoelectronics, one of the world's leading manufacturers of TFT-LCDs, is licking its wounds after announcing a staggering $125 million loss in Q3 of this year. Of course, it's not like this was difficult to see coming -- after all, those plummeting LCD prices that we consumers love so dearly have to be detested somewhere along the supply chain. At any rate, CMO's profit suffered a " three-fold decline compared to that in the same period last year," and there doesn't seem to be any end in sight for the free fall of LCD panel prices. President Ho Jau-yang asserted that the company would "review and modify its operational orientation" while "safeguarding liquidity" as it rode out the storm. We could be badly off, but we'd say the real beatings are yet to come.
So yeah, apparently that whole attempt to "streamline operations" back in April didn't go over so well, as Syntax-Brillian -- you know, that firm neck deep in panel partnerships and responsible for Olevia HDTVs -- has just filed for Chapter 11 bankruptcy. The Arizona-based company has also "entered into a deal to sell certain of its assets to a newly created company called Olevia International Group LLC," which has agreed to pick up some $60 million of its secured debt. We're also told that operations in Tempe have ceased, and "about eight employees" (including the finance chief, general counsel and finance staff) are sticking around with nothing better to do.
Not like LG had any choice but to get savvy with OLED, but either way, it's good to hear that it's making the investment willingly. According to CEO Kwon Young-soo, LG is planning to use some of its "abundant cash" (must be nice, right?) to "increase capital spending for the active-matrix organic light-emitting diodes (AMOLED) business." He refused to dole out a proper figure at the time, noting that the company was "still watching the market to seek a proper time to implement decisive action." As for logistics, it's highly likely that a little tag-team work with Samsung SDI will take place, while it's also probable that we'll see its 3.5G AMOLED line relocated to its facilities in "Paju, Gyeonggi Province, following the relocation of the two-generation production line in Gumi." So, LG -- now that we know you're all gung ho, might we see that 32-inch OLED TV before 2011?











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