If Foxconn Electronics bails out Sharp, China-based Nanjing CEC Panda LCD Technology is likely to be at a disadvantage competing for smartphone panel orders from China-based vendors, according to Digitimes Research.
CEC Panda LCD acquired a 6G a-Si TFT-LCD factory from Sharp, has invested in a 8.5G factory on a joint venture basis with Sharp, and transferred IGZO TFT-LCD technology from Sharp.
CEC Panda LCD started production of IGZO TFT-LCD panels for use in smartphones in October 2015, but few China-based smartphone vendors have adopted such panels due to low yields.
If Foxconn bails out Sharp, Sharp may withdraw from the already crowded smartphone panel market in China and focus on high-end panels for the international market. If Sharp withdraws, its market share is expected to be occupied by Taiwan-based Innolux, of which Foxconn is the major shareholder, as well as China Star Optoelectronics Technology and newly established LTPS TFT-LCD factories in China, which would make CEC Panda LCD a second-choice supplier of IGZO panels for use in mid-range smartphones.
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