The Innovation Network Corporation of Japan (INCJ) could split Sharp’s LCD business off into a new subsidiary of Japan Display (JDI), according to Japan’s Mainichi. Both organisations have previously been linked to a takeover (INCJ Would Invest in Sharp and Japan Display Would Not Ignore Sharp Deal).
Mainchi says that the INCJ would merge the LCD businesses of Sharp and JDI, creating a new entity. The INCJ would provide JDI with funding for such a move. However, there are challenges in such a move, such as an unclear amount of money being required. In addition, the result of such a merger would be responsible for more than 30% of small- and medium-sized LCD display production worldwide, which may be viewed as a violation of anti-trust laws. The INCJ is apparently considering the sale of processing factories that may overlap in China, and to otherwise restructure the production system.
