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Friday, May 23, 2008
Sanyo Buys LCDs From Sharp


Sanyo Electric Co said on Friday it has started buying liquid crystal display (LCD) panels from Sharp Corp for use in its flat TVs sold in North America.

Sanyo has bet its future on rechargeable batteries and solar cells, and is intensifying investment in these businesses amid a lackluster performance by its consumer electronics operation.

Sanyo said it started procuring LCDs from Sharp in April, and would also continue procurement from other suppliers.

Sanyo sold about a million LCD TVs in North America in the business year that ended on March 31.

Sharp, the world's third-largest LCD TV maker behind Samsung Electronics Co and Sony, has been trying to secure a stable source of demand for its LCD panels from rival TV set makers as it aggressively invests in expanding output.

It is planning to spend 380 billion yen ($3.65 billion) to build a new LCD plant in Japan, scheduled to start production by March 2010.

Sony, Toshiba and Pioneer have said they plan to buy LCD panels from Sharp.

Sanyo announced on Thursday that it had returned to the black for the first time in four years, helped by robust sales of rechargeable batteries and digital cameras, and said profit would jump this year on the sale of its cellphone unit.


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