Aug 31, 2016: Sharp has shown interest in collaborating with Japan Display Inc. (JDI) to develop OLED displays. JDI is a joint venture which includes Sony, Toshiba and Hitachi’s small to mid-sized display businesses.
Addressing the press, Sharp President Tai Jeng-wu said that this decision has been taken to catch up with the Korean competitors like Samsung and LG.
Despite much efforts, Japanese OLED manufacturers are still lagging behind the Korean competitors in OLED technology.
However, JDI denies this report as according to the company, this is a rumour and there is no plan as of now to partner with Foxconn and Sharp.
Foxconn which has taken over Sharp is aggresively moving ahead with OLED as it see great future growth in OLED market as its biggest client Apple is being keen to use OLED in its new products. Other major smartphone manufacturers are also using OLED displays in their next generation smartphones.
As a result, to build better businesses with Apple, Foxconn and Sharp have to adopt OLED technology and push themselves in the competition. Sharp’s display technology was the main reason for Foxconn to invest in.
Industry insiders believe that if Sharp and JDI form an OLED alliance, it will be beneficial for both the companies. However, it will be difficult for this partnership to happen as Sharp had earlied backed out of the partnership talks when JDI was formed in 2012. Foxconn also has a delicate relationship with JDI’s major shareholder Innovation Network Corporation of Japan (INCJ), as Foxconn and INCJ were direct competitors in the bid for Sharp.
Although it seems that JDI is not currently interested in forming a pan-Japan OLED Alliance with Sharp, the market has responded positively by this news as JDI shares went up by 13%. Sharp’s stock value also increased by 3%.