Sony and Sharp have not officially denied a report that they have scrapped plans to jointly make large liquid-crystal display panels at Sharp?s plant in Sakai, near Osaka. The Yomiuri nespaper reported last weekend that Sony would cancel its plans to jointly produce liquid-crystal display panels with Sharp and boost procurement from Taiwan. The report said Sony may also drop its plan to raise its stake in the firm from the current 7 percent.

Sony today made a brief statement on the media reports, saying that "the company has made no announcement in this regard and has no comment."

Sharp and Sony entered into a joint venture agreement related to the production and sales of large LCD panels and modules last year. The two companies had agreed to establish the joint corporation to operate Sharp's Sakai plant and they started making LCD panels about three months later.

Sony has about a 7 percent interest in the joint firm and was to increase its holdings to a maximum of 34 percent by the end of April 2011.