Reports: Sony to buy LCD panels from Sharp

Continuing the trend among LCD TV makers to pool their resources, Sony said it will buy panels from competitor Sharp in order to keep up with demand.

Neither company is commenting on the report, which first surfaced in the Japanese media on Friday. However, Sharp is already working with another LCD TV manufacturer, using Toshiba's computer chips in its own sets.

In return, Toshiba purchased LCD TV panels from Sharp. It was not immediately clear what size LCD panels Sharp would be supplying Sony. Either way, analysts say the move is a good one for either company: It will further the president of Sharp's stated goal of bringing in more external customers to purchase its LCD panels. At the same time, Sony benefits from outsourcing a portion of its manufacture process to another company.