Report: Sharp and Philips agree on LCD TV deal

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The consolidation process in the TV business continues and now even becomes international. Just last month, Sharp inked a “historical” joint venture deal with former rival Sony, agreeing to supply LED backlights to Sony for their LCD TVs (which happened this month).

And now Japan’s biggest business publication, the Nikkei, has learned that Sharp now plans to deliver LCD TV panels to Dutch electronics giant Philips. Starting as early as next year, the panels will be shipped from Sharp’s plant in Sakai, Osaka, to Philips factories in South America and Poland.

The Sakai plant began operating just in October this year. Sharp’s factory in Poland will first turn the panels into semi-finished products and then deliver them to Philips’ plant in the same country. In South America, Sharp panels will be shipped to Philips factories in Brazil.

According to the Nikkei, Sharp aims at optimizing use of their new plant through the cooperation, while Philips tries to cut production costs for their TVs and wants to reach break even in that segment next year.

Research company Display Search says Sharp is currently the world’s fifth biggest LCD maker, while Philips is the number six.

Via Nikkei [registration required, paid subscription]