Sharp to Stop Supplying Samsung with TV Panels

Japan's Sharp has told Samsung it will no longer be supplying LCD panels for televisions after it was taken over by Taiwan's Hon Hai Precision Industry.

Samsung has turned instead to rival LG Display. "Sharp informed Samsung's TV division last week that it will stop supplying LCD panels next year," an industry insider said on Tuesday.

Samsung executives in an emergency meeting decided to turn to LG, which is considering the proposal, the insider added.

Sharp supplied Samsung with 4 to 5 million LCD panels a year, almost half of its entire output and meeting about 10 percent of the Korean giant's demand.

But industry sources said Hon Hai now wants to use Sharp to make its own TVs on a massive scale and could emerge as a formidable rival to Samsung. Hon Hai beat Samsung to the buyout of Sharp in April and also owns iPhone consignment manufacturer Foxconn.

It is unprecedented for Samsung to turn to LG for help since the two family-owned conglomerates have been archrivals for decades and made it a policy not to use each other's products.