updated 06:30 pm EST, Tue January 31, 2012
Drop in demand affecting other LCD makers as well
For the second time in a year, Sharp has announced that it will be cutting production of LCDs screens in its Sakai City (Osaka) Japan production facility. Nikkei is reporting [subscription required] that the company plans to reduce its output by one-half. Sharp will continue pushing out the screens at these levels for at least one month, and possibly longer.
Sharp, as with other screen makers, has been hurt by a global drop in demand for TVs. The Sakai facility is able to produce the equivalent of 1.3 million 40-inch panels monthly. In April, it stopped production for about one month. After it resumed production, it did so only at 80 to 90 percent of its full capacity. Sharp may use the current production hiatus to upgrade the plant so it can make panels with enhanced functionality and performance. Sharp began producing panels at the facility in October, 2009.
Sharp is not the only producer to be feeling the effects of diminished demand. In December, Sony announced that it was selling its stake in its S-LCD joint venture back to its partner, Samsung. Last October, Panasonic announced plans to dedicate half the production capacity of its Hyogo Japan facility to producing tablet panels. [via Reuters]