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The
venture in the city of Sakai, western Japan, will stop supplying
liquid crystal display panels to South Korea's Samsung next year
as the three companies failed to agree on the terms of the
arrangement, the person told Reuters.
The person was not authorized to speak with media on the matter
and so declined to be identified.
Samsung is the venture's biggest client, with shipments of 2
million to 3 million panels a year.
South Korean daily Chosun Ilbo reported earlier this week that
Samsung had turned to LG Display Co Ltd for television panels
after being notified of the decision.
Sharp, Samsung and LG Display all declined to comment when
contacted by Reuters. Foxconn referred Reuters to Sharp.
The decision comes as Sharp works to revive its television
business under the control of top shareholder Foxconn, the
world's biggest contract electronics manufacturer formally known
as Hon Hai Precision Industry Co Ltd.
Sharp aims to double global TV sales to over 10 million sets in
the business year beginning April 2018, which would require the
Sakai venture to produce more panels for the group's own TV
business.
Sharp sold 5.8 million TV sets in the year ended March 2016.
(Reporting by Makiko Yamazaki; Editing by Christopher Cushing)
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