What Display Daily thinks: Sharp Corporation, a pioneer in LCD technology, has significantly influenced the display market since the 1970s with innovations like the first LCD calculator and LCD TV. However, facing intense competition from Chinese and South Korean manufacturers, Sharp, under Foxconn’s ownership since 2016, is pivoting from traditional display manufacturing (TVs) to focus on artificial intelligence and advanced consumer electronics.
It’s the definition of the end of an era.
There is no more, or less, of a prominence to these events. It is also unlikely to be the last divestiture of a display business that we will see this year.
If there is any augury in all of this it is that there’s a cull happening in the display industry and it will strengthen the hand of those who avoid the cut. It is kind of sad to see brands like Sharp disappear from the industry. Nostalgia has its own opinions.
I have been told that it is only the TV business so why the title – IT, mobile, automotive, digital signage all carry on – which I understand, but my intent is to emphasize this as the end of an era for Sharp as a display company. I get the pivot to all the other opportunities, but I am not sure how you fight the Chinese and South Koreans on all those fronts after you just got smacked on TVs? Same difference.
Bye Bye Sharp
Sharp, a subsidiary of Taiwan’s Foxconn, has announced significant operational changes to address its financial difficulties. The company plans to discontinue production at its loss-making TV display factory in Sakai, Osaka by September of this year. This decision follows consecutive fiscal years of net losses, exacerbated by intense competition from larger Chinese manufacturers like BOE Technology.
According to NIkkei, in addition to closing the Sakai factory, Sharp will reduce production of smaller display panels and is considering selling off some of its device businesses, including those involved in smartphone camera parts and display semiconductors. The company is in discussions with Foxconn and other firms about these potential sales.
Sharp’s CEO, Wu Po-hsuan, expressed concerns about the company’s cash flow and its impact on investment in more profitable areas, such as consumer electronics. In response, Foxconn’s chairman, Young Liu, announced plans to transform the Sakai factory into an AI data center, indicating a strategic shift towards leveraging AI technology for various applications.
This transformation is part of a broader initiative by Sharp to become “asset light” and focus more on AI and semiconductor-related businesses, aligning with incentives from the Japanese government. Foxconn, which has suffered financial losses from its Sharp operations, supports these changes, underscoring its commitment to Sharp’s strategic overhaul and potential in AI and cloud computing technologies.
