A recent Nikkei Asian Review report claiming Innolux would be scaling back LCD supplies to competitors because of Foxconn group policy was refuted by the LCD panel subsidiary recently.

The Nikkei report claimed Foxconn subsidiary Sharp will halt LCD panel supplies to Korean manufacturers Samsung, LG, as well as Chinese manufacturer Hisense next year. The report went on to claim Innolux, a LCD and TV panel maker under the Foxconn Group umbrella, would be reducing LCD panel supplies to Chinese companies.

Innolux 4K2K resolution LCD TV. (Innolux/LEDinside)

Innolux stated even though it was a member of the Foxconn group, along with Sharp the companies were independent legal entities with separated operations. They had their independent client base, partners, and never discussed client strategies or supply quotas with each other. Innolux stated the Nikkei report put the company at risk of infringing anti-trust laws.

The statement further noted Innolux, was formerly a business of Chimei Electrics. Prior to Foxconn’s takeover in 2010, Chimei Electrics incurred massive financial and operation losses from violating Europe and U.S. anti-trust laws. It was a hard learned lesson for Taiwan’s technology industry, which was why Innolux has been careful in abiding to international anti-trust laws.

The company clarified three points in its statement:

1. Innolux, Foxconn, and Sharp are three independent legal entities with separate operations, each have their own client base and partners. The companies do not discuss client strategy, shipment, or supply quotas with each other to prevent violating anti-trust regulations.
2. The three companies each have their own panel businesses, and are responsible towards their shareholders. Media reports claiming Foxconn will be monopolizing the global display markets, and consolidated Sharp and Innolux revenues into Foxconn’s. This violates listed company accounting principles and governance.
3. Innolux has always abided to countries laws and regulations, and base actions on fair market competition when dealing with Sharp and other competitors in the market.