LG Electronics Procure LCD Panels from Sharp

Based on a news report from DigiTimes, LG Electronics (LGE) is sourcing LCD panels from Sharp. With LGE’s strong relationship with LG Display (LGD), LGE is able to procure most of what it needs. However, it seems LGD is not able to meet the growing demand from its part-owner and semi-parent company.

It seems LGE is focusing on very large LCD TVs and cannot seem to procure enough 52″ panels from LGD. LGD will be more capable of supplying really large LCD TV panels once its Gen. 8 (G8) line comes online, sometime in 2009. Samsung has been supplying LGE with 52″ LCD TV panels.

LGE is sourcing a much smaller but quite a bit more popular 32″ LCD TV panels from Sharp. LGE probably sources the great majority of 32″ panels from LGD, but at this time LGD is not able to meet LGE’s demand.

Having multiple sources of a particular LCD is good business practice and can have a dual effect of stabilizing supply and increasing price competition. In the case of LGE, it might be that older brother is helping younger brother to become more competitive.

Source: DigiTimes

[tags]LG Electronics, LGE, LG, Sharp, LCD, Samsung, LG Display, 52″, LCD TV[/tags]

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