Sharp to keep IGZO technology in-house
Following the curtailment of large panel shipments to Samsung (005930.KS) and Hisense (600060.CH), Sharp (6753.JP) now says the idea is to keep its IGZO[1] technology in-house. Citing the continuing competition from other TV brands, Sharp’s new management and owners are trying to end all supply relationships that entail Sharp’s IGZO backplane technology. While Samsung and Hisense were likely the biggest customers, the company still has an agreement to supply the technology to Chinese panel producer CEC Panda (pvt), who uses it at its Gen 8 fab in Nanjing, and potentially at two Gen 8.5 fabs in Xianyang and Chengdu that are under development. Sharp says it is reviewing its JV agreement with Panda and will continue to supply the technology if contract conditions are met.
Sharp plans to use IGZO as a differentiating technology for its own brands, stating, “There is no IGZO technology at other companies, it is Sharp’s advantage, I do not intend to supply it to other companies.” Understandably, Sharp is protecting its assets, but we believe, aside from Panda, both AU Optronics and BOE (200725.CH) have large panel IGZO capabilities, and while Sharp is known to be the leader in commercializing the technology, we would expect BOE at least, to capitalize on its ability to produce IGZO displays. We believe that the technology represents ~8.3% of overall display capacity currently, and while Sharp and JV partner Panda are in production, BOE has the capability, if they fully utilize the technology across available production platforms, to be the IGZO share leader.
[1] Indium Gallium Zinc Oxide (aka ‘Oxide’)
Sharp plans to use IGZO as a differentiating technology for its own brands, stating, “There is no IGZO technology at other companies, it is Sharp’s advantage, I do not intend to supply it to other companies.” Understandably, Sharp is protecting its assets, but we believe, aside from Panda, both AU Optronics and BOE (200725.CH) have large panel IGZO capabilities, and while Sharp is known to be the leader in commercializing the technology, we would expect BOE at least, to capitalize on its ability to produce IGZO displays. We believe that the technology represents ~8.3% of overall display capacity currently, and while Sharp and JV partner Panda are in production, BOE has the capability, if they fully utilize the technology across available production platforms, to be the IGZO share leader.
[1] Indium Gallium Zinc Oxide (aka ‘Oxide’)
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