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Sharp sword to LCD production

by on06 April 2015


Wants government investment

The dark satanic rumour mill has manufactured a hell on earth yarn that loss-making Japanese electronics maker Sharp is planning to spin off its LCD panel business.

According to the Irish Times  Sharp is going cap in hand to the government asking for funding for it from the government-backed Innovation Network Corporation of Japan.

The plan is that Sharp, which flogs displays to smartphone and tablet manufacturers, will be spun off in the current fiscal year and that INCJ could invest 100 billion yen in the new entity.

Under the deal Sharp will keep a majority in the LCD unit, and that details of an INCJ stake have not been decided.

A Sharp spokesman, while confirming the company was considering various reforms for its LCD business, said no decision had been made.

The outfit is on track for its third annual net loss in four years, has been trying to negotiate its second major bailout since 2012, with the company promising restructuring in return for new funds.

However Sharp is under pressure from its creditors Mizuho Bank and Bank of Tokyo-Mitsubishi who want a radical overhaul and an exit from loss-making businesses.

Sharp denial

Sharp has denied it will make moves such as selling its LCD unit. This arm of the company accounts for roughly one-third of sales but has struggled with tough price competition from Chinese manufacturers as well as domestic rival Japan Display, which is 35 percent owned by INCJ.

The strokers of beards and people in the know think that Sharp could merge its display business with Japan Display to gain competitiveness and pricing power, though sources at Sharp have recently said its management was not willing to do that either.

Last modified on 06 April 2015
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