After halting supply to Samsung, Sharp could also stop selling LCD panels to Hisense

Japan’s Sharp is reviewing an idea of discontinuing the supply of TV LCD panels to China’s Hisense following a decision to stop providing the components to Samsung Electronics. This is interpreted as a move by Terry Gou, chairman of Hon Hai Precision Industry that acquired Sharp, who plans to double the sales of its own LCD TV brand “Aquos” to 10 million units by 2018.

According to the Nikkei on December 21, Sakai Display Products Corp., the joint venture between Hon Hai and Sharp, is weighing an option of whether to keep providing TV LCD panels to Hisense. The Hon Hai-Sharp alliance is pushing forward with a plan to revive the Sharp TV brand. To this end, the companies are trying to reduce the supply of LCD display panels to other TV producers so that they could keep as many components as possible for their own brand.

Another factor in the decision has to do with the move to increase its profit margin. Hisense is the world’s fourth-largest flat-panel TV producer with a share of 5.9 percent, according to IHS Technology.