Sharp to stop making LCD panels for TVs

Struggling Japanese electronics firm Sharp says it will stop making large LCD panels for TVs by the end of September.

The company makes the displays at a factory in Osaka Prefecture run by subsidiary Sakai Display Products.

Sharp says the decision was prompted by rising raw material prices and labor costs, which could worsen its losses in the LCD business.

The company has struggled against its Chinese and South Korean rivals, and its problems have been compounded by weakening demand across the TV market.

Sharp will also scale down production of small- and medium-sized LCD panels for PCs and smartphones. It makes those screens at a factory in the central Japanese prefecture of Mie.

The firm posted a net loss of almost 150 billion yen, or about 960 million dollars, for the fiscal year through March. It was the second year in a row that it ended in the red.