Japanese electronics maker Sharp Corp. will shut down production lines for liquid crystal display panels at two domestic plants due to faltering global demand for personal computers and mobile phone handsets, a report said Thursday.
Sharp, a leading maker of liquid crystal display panels and flat-panel TVs, will slash some 300 contract workers in line with the production halt, said the evening edition of the Nikkei, Japan's top business daily, citing no sources.
It would be the first time Sharp has closed liquid crystal display production lines in operation, the paper said.
A spokeswoman for Sharp could not confirm the report.
Sharp will close one production line each at its plant in Mie and another factory in Nara, the Nikkei said. Both factories are located in western Japan. The two production lines began operations in the early 1990s, and currently make low-definition liquid crystal display panels.
Sharp decided to shut down the lines due to a prolonged slump in global demand for personal computers and mobile phone handsets, which use liquid crystal display panels.
The paper said the closure will be completed within the following fiscal year, which starts in April 2009.
Sharp competes with South Korea's Samsung Electronics Co. and Japanese electronics maker Panasonic Corp. in the global liquid crystal display market.
Shares in Sharp slipped 0.5 percent to close Thursday at 647 yen ($7).
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