Japan Display Inc. and Sharp Corp. are in a fierce battle to land liquid crystal display panel contracts from Chinese smartphone makers.
Since some of the Chinese makers are starting to offer high-quality handsets, the two rivals want to boost their profiles in the global market by attracting the Chinese firms.
These Chinese makers produce their handsets using state-of-the-art components imported from other parts of the world and sell them at low prices over the Internet.
If Chinese makers fully start to expand overseas operations, the global smartphone market landscape could change dramatically, an analyst at a market research company said, adding that it would have a substantial impact on LCD makers.
Japan Display is proposing supplying ultrahigh-resolution, low-temperature polysilicon (LTPS) LCD panels to Chinese smartphone makers at low costs. It is aiming to increase sales in China 2.7-fold year on year in fiscal 2014.
Meanwhile, Sharp mainly plans to supply LCD panels using its energy-efficient indium gallium zinc oxide, or IGZO, technology. The company will also offer LTPS and other panels to meet various needs from Chinese smartphone makers.
In fiscal 21014, Sharp intends to increase the number of its client smartphone makers in China to 10 from six.