SAN FRANCISCO, Nov 14 (Reuters) - Sharp Corp (6753.T) is planning to cut production of liquid crystal display (LCD) panels for televisions at its main Japanese plant, the Nikkei news agency reported on Friday.
The LCD industry is struggling with weaker panel prices and a drop in demand for flat-screen TVs and monitors. As the global economy slows, analysts do not expect the sector to recover until the second half of next year.
Sharp may cut production at its plant in Kameyana by as much as 10 percent from mid-December, the Nikkei said. The company will monitor sales of LCD TVs before making its final decision. It would be the first cut at the plant, which began operations in 2004.
Sharp said last month it was still expecting to reach sales of 11 million LCD TVs in the year ending March 2009.
Earlier this week, Sharp and rival LCD screen makers LG Display Co (034220.KS) and Chunghwa Picture Tubes Ltd (2475.TW) agreed to pay a total of $585 million in fines and plead guilty in a U.S. price-fixing probe. (Reporting by Gabriel Madway, editing by Leslie Gevirtz)