Sharp Corp. acquired by Taiwan-based Hon Hon Hai Precision Industry Co. has decided to stop supplying its liquid- crystal display (LCD) panels to Samsung Electronics Co., hinting its attempt to re-enter the premium TV market by ending its long-time LCD partnership with the Korean electronics giant.

According to Samsung Electronics Wednesday, Sharp recently informed the Korean firm it would no longer supply LCD panels. Following the notification, Samsung Electronics has requested other display suppliers, including its panel making sister company Samsung Display, LG Display that is the biggest rival of Samsung Display, and Innolux, to up their panel supply to it.

An unnamed official at Samsung Electronics said losing one LCD panel supplier would not cause any big trouble for the Korean tech giant’s TV production because the Japanese firm’s panels accounted less than 10 percent of its total TV panel demand.

Industry observers, however, suspected Hon Hai, parent company of Sharp, has made the decision to stop supplying panels to Samsung Electronics in an attempt to compete against the Korean TV maker in the premium TV market. Hon Hai has been an original design manufacturer (ODM) of TVs before it acquired Sharp in August. It seemingly seeks to renew the Sharp-brand TV business by ending panel supply to Samsung, an unnamed industry source said, adding that the Taiwanese firm looks to the Sharp-brand, well-known in North America and Europe as the world’s first producer of LCD TV, to challenge the Korean players that are currently the global TV market leaders.

According to market research firm IHS Markit Ltd., Samsung Electronics dominated the global TV market commanding a 21.0 percent market share, followed by LG Electronics Inc. with 12.7 percent and others each making up around 5 percent. The Korean majors-led premium TV market is also coveted by their rivals.

Following the latest move, the price of display panels is also expected to continue to rise on higher demand than supply.

By Kim Dong-eun

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]