Large computer maker Dell has filed suit against five Asian tech companies this week, alleging that all five colluded as a cartel to overcharge for LCD panels.
The suit is against large manufacturers Sharp, Hitachi, Toshiba, Seiko Epson and HannStar Display and was filed in San Francisco.
The complaint notes that Dell is taking action “on behalf of itself and its affiliates to recover for antitrust and other harms arising from billions of dollars of purchases at artificially inflated prices, over several years, of thin film transistor-liquid crystal display panels, or products containing TFT-LCD panels.”
Dell goes as far as to say that the LCD price fixing has been in effect since 1996.
In the past, Sharp was accused and pleaded guilty to price fixing, agreeing to pay a $120 million fine.
Result for: lcd panels
LG Display has increased fears of rapid supply growth of LCD panels by announcing it is considering constructing a new LCD production line to meet demands. Manufacturers of LCD television products have been enjoying a healthy level of demand for LCD flat-screens, bolstered recently by Chinese holidays and sporting events like the Winter Olympics.
However, concerns are taking root in the industry that it may return to a state of oversupply as manufacturers beef up production to capitalize on the demand. Controlling supply is important for players in the industry to maintain profit margins for the technology.
“Although demand is strong, growing capacity will become increasingly burdensome for the industry,” said Jason Kang, an analyst at NH Investment & Securities. “Supply is already growing and the growth will be faster next year.”
LG plans to begin operation of a separate production line in the first half of 2010, while Taiwanese rivals are increasing factory utilization. “We are considering increasing capacity because we have been unable to meet all client demand for some time,” said an LG Display spokesman. “But nothing has been decided yet.”
LG Display CFO James Jeong revealed to investors just last month that the company was meeting under 90 percent of orders received and that the situation was likely to continue for months.
Result for: lcd panels
Sharp concluded their CES 2010 announcements today introducing QuadPixel technology.
QuadPixel, which will be added to new Aquos LCD panels, adds a “Y” pixel to RGB pixels, giving TVs the capability to display over 1 trillion colors. Current LCDs can render one to two billion colors.
The HDTVs will not be cheap however, with the LE 920 Series starting at $3300 for the 52-inch model.
All pics via DVICE:
