Electronics News
- Guangdong News
Date: 16-Jan-2007 Sources: (Shenzhen Daily)
SHARP Corp. yesterday denied a media report that the Japanese electronics maker plans to build a US$1 billion flat-panel display factory in Shenzhen (SZ) with the local government and TCL Corp.
Taiwan's Commercial Times earlier reported Sharp plans to set up China's first 7.5-generation liquid-crystal display (LCD) panel factory through a joint venture with TCL, the country's largest TV producer, and the Shenzhen city government.
The initial investment on the plant, which is set to start production next year, is between US$900 million and US$1.5 billion, the newspaper reported, quoting unidentified industry sources.
Sharp could own a 51 percent stake in the new company, while the Shenzhen government would take around 40 percent and TCL the remaining 9 percent, the report said.
'The report is wrong,'said Sharp spokeswoman Miyuki Nakayama in Tokyo.
The report comes after Sharp said last week it will aim to boost operating profit by 10 percent in the next business year on higher sales of liquid crystal display TVs and solar cells.
Sharp president Katsuhiko Machida said his company may need another plant to help secure stable profits and meet the firm's goal to take a 10 percent share of the entire TV market by 2010.
Sharp has said it expects to sell 50 percent more LCD TVs in the year starting in April, and it will decide about plans for its next LCD plant by this summer.
Shenzhen-listed TCL is still struggling to turn around the loss-making color TV business that French rival Thomson sold it years ago. The company said Friday that it returned to the black in the third quarter but still expected to post a loss for the full 2006.
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