Sharp Corporation has announced its decision to sell its small and midsize liquid crystal display (LCD) panel plant in Kameyama, Mie Prefecture, to its Taiwanese parent company, Hon Hai Precision Industry. The transaction, set to be completed by August 2026, marks a significant step in Sharp’s strategic plan to streamline its business operations.
The decision to sell the Kameyama No. 2 plant comes as Sharp seeks to concentrate its resources on more competitive and profitable sectors. The LCD panel business, which has struggled financially in recent years, is being downsized as part of a broader restructuring effort. Despite the transfer, Sharp assured that the plant would continue to fulfil existing client orders.
Sharp President Masahiro Okitsu, speaking at an online news conference, confirmed that the company would maintain production of automotive LCD panels at its Kameyama No. 1 plant, as this segment remains a key profit driver. In another move reflecting its strategic realignment, Sharp plans to relocate its headquarters from Sakai to Osaka City within Osaka Prefecture.
Financially, the company has reported a consolidated net profit of ¥36 billion for the fiscal year ending March 2024, marking a substantial recovery from the previous year’s net loss of ¥149.9 billion. This turnaround, the first profit recorded in three years, was attributed to successful restructuring measures and gains from asset sales.
However, Sharp’s overall sales fell by 7.0% year-on-year to ¥2.16 trillion. Despite the decline, the company reported an operating profit of ¥27.3 billion, a notable improvement from the previous year’s loss of ¥20.3 billion. Looking ahead, Sharp projects sales of ¥1.85 trillion for fiscal 2025, representing a 14.4% decrease, and anticipates a net profit of ¥10 billion, a decline of 72.3%.
The restructuring follows a period of financial difficulties, which led to the suspension of operations at Sharp’s television LCD panel factory in Sakai in August of the previous year. As part of its ongoing efforts to optimise operations, the company also sold part of the factory’s land and buildings to SoftBank.
By offloading non-core assets and focusing on high-value production, Sharp aims to strengthen its long-term financial stability while continuing to serve its core customer base through strategic partnerships and targeted product offerings.
-Japan Times
