The gist of it: will Foxconn do what it takes to help Sharp? The implications of any negative action will bear significantly on the display industry and supply chains.
Sharp reported that it wrote down a huge chunk of the value of its panel display business and various other assets. The company experienced a significant decline from the previous year’s profit of with a group net loss of 261 billion yen ($1.9 billion) for the year ending in March, 2023. Despite slightly higher sales, Sharp took a hit of 220 billion yen ($1.63 billion) due to write-downs in the value of its LCD and OLED display businesses in Japan, as well as software, machinery, and buildings in multiple countries. The write-down was a reflection of decreased profitability. Foxconn has expressed concerns about the management and operations of its affiliate company Sharp, stating that it will request Sharp make improvements or adjust its management team. Foxconn holds a 34% stake in Sharp.
