Foxconn's Sharp to spend $570 million on OLED panel production
- Goldman sends Dow to record high, techs lift S&P, Nasdaq
- Oil tops $55 for first time in 16 months as OPEC deal fuels buying
- Consolidated Communications (CNSL) to Acquire FairPoint Communications (FRP) in $1.5B Deal
- Pre-Open Stock Movers 12/05: (FRP) (GMED) (CHK) Higher; (CERC) (HDSN) (MRVL) Lower (more...)
- Burberry rejects multiple takeover offers from Coach: Financial Times
A man using his mobile phone walks past Sharp Corp's liquid crystal display monitors showing the company logo in Tokyo, Japan, March 30, 2016. REUTERS/Yuya Shino/File Photo
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
By Thomas Wilson
TOKYO (Reuters) - Japan's Sharp Corp said it will spend $570 million on its organic light-emitting diode (OLED) screen business - one of its first major investments since it was taken over by Taiwan's Foxconn although the amount pales in comparison to efforts by South Korean rivals.
Manufacturers of consumer and other electronics are gradually shifting towards OLED screens which are generally thinner and are more flexible than liquid crystal display (LCD) screens.
Sharp said it will invest in pilot production lines at its plants in Osaka and in Mie prefecture, western Japan, which are due to start between April and June 2018.
Sharp is hoping to team up with its domestic rival Japan Display Inc on OLED displays, the Nikkei business daily reported last month, quoting new CEO Tai Jeng-wu.
Foxconn, formally known as Hon Hai Precision Industry Co Ltd , secured control of Sharp last month in a deal that gives its access to the Japanese firm's advanced screen technology and which is likely to help strengthen its pricing power with major client Apple Inc.
South Korean rivals have bet heavily on the technology over the last two years. LG Display Co Ltd said last year it would invest 10 trillion won ($9 billion) in a new plant to make the ultra-thin panels. Samsung Display, an unlisted unit of Samsung Electronics Co Ltd that's the largest maker of OLEDs for smartphones, is investing 4 trillion won by 2017 in an OLED production line.
Research firm IHS has forecast that shipments of OLED smartphone panels will overtake LCDs in 2020.
($1 = 101.1500 yen)
($1 = 1,101.7000 won)
(Reporting by Thomas Wilson; Editing by Edwina Gibbs)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Brazil lawmakers probed for bribes elicited during Petrobras inquiry
- U.S. rates futures hit session lows after data
- U.N. launches record $22.2 billion humanitarian appeal for 2017
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!