Abstract: Nitto Denko, Japan's major electronic components company, will enter the Chinese market in the core components of LCD TVs. Nitto Denko will carry out technical cooperation with Chinese local enterprises and plan to charge 15 billion yen in authorization fee within 5 years. In addition, it discusses the supply of raw materials to the new factories of Chinese enterprises.

    Nitto Denko will provide liquid crystal technology to Chinese enterprises. Nitto Denko, Japan's major electronic components company, will enter the Chinese market in the core components of LCD TVs. Nitto Denko will carry out technical cooperation with Chinese local enterprises and plan to charge 15 billion yen in authorization fee within 5 years. In addition, it discusses the supply of raw materials to the new factories of Chinese enterprises.

    China overtook South Korea in 2015 to become the world's largest LCD TV production base. Nitto Denko's demand for high-quality products is growing, and it will build a foothold in China by providing technology.

    Nitto Denko will provide the core components of the LCD panel polarizer related technologies. Polarizing plate with control of light, the image of the role of sharp. Nitto Denko holds 20-30% of the world's share in the field of polarizers for LCD TVs, becoming the top 3 in the world alongside Sumitomo Chemical and South Korea's LG Chem.

    Nitto Denko will start a five-year technical cooperation with three companies starting from November. The three companies were, Hangzhou Jinjiang Group, Jinjiang Group's Chi Mei Materials Technology, SAPO. Nitto Denko will receive about 70 to 8 billion yen in authorization fees in fiscal 2017. After that, according to the progress of the collection, scheduled for 5 years totaled about 15 billion yuan.

    Hangzhou Jinjiang Group is engaged in mining operations and power generation of large-scale resource enterprises, as part of diversification strategy, will be involved in the production of television polarizing plate. Jinjiang Group will build new factories in Kunshan and Shenzhen and adopt the technology of Nitto Denko to produce large-sized polarizers. Plans to obtain more than half of China's domestic market share. In addition, Nitto Denko also discussed the provision of polarizer film and other raw materials needed for manufacturing.

    Nitto Denko's TV polarizer was mainly used to supply South Korea, Taiwan and Japan's high-end panel. Most Chinese-made panels are popular products, low profit margins, Nitto Denko had almost no footballer.

    However, there are predictions that China's LCD TV production capacity by 2018 will exceed half of the world, the next 10 years will increase to about 80%. In addition, the television market is also expanding, and the demand for ultra-high definition 4K TVs and the like will increase in the future. Nitto Denko believes that its own good demand for high-priced products will increase. Nitto Denko has taken a less risky approach by providing technology licenses to enter the Chinese market than a joint venture with local companies and expanding its business separately.