Sharp Sakai Gen 10 LCD TV factory soon to be closed?

The market analysis and research firm Omdia, via its analyst Charles Annis, takes up a rumor dated March 17 concerning the closure of Sharp's Gen 10 LCD factory located in the town of Sakai in Japan.

As a reminder, the Sakai factory, whose production of LCD panels began in 2009, was the first of generation 10 in the world. At its launch, it was at the cutting edge of technology because it was capable of mass manufacturing large screen diagonals (up to 80'', 203 cm), and ahead of its time by taking into account many environmental considerations. . For example, the recovery and use of rainwater.

Sharp's Sakai factory desperately seeks profitability££££ Despite unrivaled modernity, the factory suffered from the sharp global economic recession of early 2010s and the transfer of production of LCD TV panels to lower cost regions, China and Taiwan in the lead. Sakai Display Products, struggling with multiple financial difficulties, therefore changed ownership, without however regaining healthy profitability. If Sharp, owned by the Taiwanese group Foxconn, now decides to close the factory, it would inexorably have implications for the flat screen industry. Charles Annis suggests that although some of Sakai Display Products' major customers, such as LG Electronics, Samsung VD and Walmart Onn might face some difficulties in terms of supplying LCD TV panels. At the same time, the closure of the Sakai factory could lead to a moderate increase in panel prices due to the relative scarcity of supply.

Closure of the Sakai factory, an important step in industry consolidation of the screen££££ On the other hand, the potential closure of Sakai Display Products would represent an important step in the consolidation of the industry, with panel production increasingly concentrated in China. Indeed, without the Sakai factory, the main Chinese suppliers of TV panels, such as BOE, CSOT and HKC, would automatically see their weight increase in negotiations with global TV brands. At the time of writing,

Sharp has not reacted to Omdia's statement or to the rumor. For its part, Omdia indicates that it is closely monitoring developments in the flat screen industry to provide updates and details as soon as they become available.