Although announcing capacity expansion plans in January, Japan-based Sharp is still aggressively outsourcing LCD TV panels from Taiwan-based makers due to tight supply at its sixth-generation (6G) TFT LCD panel plant, according to market sources, as cited in the Chinese-language Commercial Times.

The paper is reporting today that Quanta Display (QDI) has had its 26-inch and 32-inch LCD TV panels validated by Sharp, with shipments of about 15,000 32-inch panels expected to begin in March, according to market sources.

On February 10, the paper reported sources as saying that Chi Mei Optoelectronics (CMO) landed 32-inch LCD TV panel orders from Sharp.

According to Bloomberg, Sharp has been losing market share amid fierce competition from its major rival Sony.

Market sources noted that Sharp’s 6G capacity cannot meet demand, which has been a major factor in the company’s declining market share.

In January, Sharp president Katsuhiko Machida announced that the company will invest 15 billion yen (US$130 million) to expand production at its 6G fab to boost the LCD TV panel production capacity by 18%, in a bid to catch up surging demand.

Sharp’s 6G plant focuses on 32-inch and 37-inch panel production. The Japan company’s 8G Kameyama No.2 plant is expected to commence production this summer, according to the company.