(Reporter Liu Xinyu) The impact of the earthquake in Japan on the panel industry is triggering a new round of business war! Yesterday, our reporter confirmed that Samsung LCD panel maker S-LCD, which is a joint venture between Samsung Electronics and Sony, has announced that the company will reduce its share capital by 15%. Reducing the share capital will mean giving up more financing chips. "This is an extremely important message."
With regard to this reduction, Sony’s headquarters replied to this reporter yesterday, saying that S-LCD’s initiative to reduce capital in certain circumstances was based on the agreement between the two companies. The purpose of lowering capital is to return the profits created by S-LCD to the two parent companies.
Sony said that it is a common practice for a joint venture to return profits to the parent company by reducing capital.
Recently in the Chinese market, Japanese and South Korean companies have apparently “marked up†the panel industry. Samsung had just announced a cross-shareholding in the panel project with TCL last week. TCL has become the minority shareholder of Suzhou Samsung's 7.5-generation line that will receive formal approval from the Ministry of Commerce. This is another cooperation between domestic TV companies and Korean panel giants after the agreement signed by Skyworth Digital to acquire Guangzhou LGD8.5.
Analysis: Do not rule out the shift of backward technologies to China. There may be analysis that Japanese and Korean companies “brake†overseas panel investments and actively look for “relatives†in China. Do not rule out the transfer of relatively backward display technology to China. Overseas media analysts believe that S-LCD has reduced its share capital because "Samsung is seeking to produce a new type of display."
It is also widely believed in the industry that LCDs will be replaced by new types of displays. If this is the case, should the rising investment in domestic LCD panel industry consider the risk of overcapacity or backward technology? In the development of new monitors, will it once again become a "chaser" role?
With regard to this reduction, Sony’s headquarters replied to this reporter yesterday, saying that S-LCD’s initiative to reduce capital in certain circumstances was based on the agreement between the two companies. The purpose of lowering capital is to return the profits created by S-LCD to the two parent companies.
Sony said that it is a common practice for a joint venture to return profits to the parent company by reducing capital.
Recently in the Chinese market, Japanese and South Korean companies have apparently “marked up†the panel industry. Samsung had just announced a cross-shareholding in the panel project with TCL last week. TCL has become the minority shareholder of Suzhou Samsung's 7.5-generation line that will receive formal approval from the Ministry of Commerce. This is another cooperation between domestic TV companies and Korean panel giants after the agreement signed by Skyworth Digital to acquire Guangzhou LGD8.5.
Analysis: Do not rule out the shift of backward technologies to China. There may be analysis that Japanese and Korean companies “brake†overseas panel investments and actively look for “relatives†in China. Do not rule out the transfer of relatively backward display technology to China. Overseas media analysts believe that S-LCD has reduced its share capital because "Samsung is seeking to produce a new type of display."
It is also widely believed in the industry that LCDs will be replaced by new types of displays. If this is the case, should the rising investment in domestic LCD panel industry consider the risk of overcapacity or backward technology? In the development of new monitors, will it once again become a "chaser" role?
Brilliant Electronic Systems Technology Co., Ltd. , http://www.yichen-flashlight.com