Sharp Seeks to Spin Off LCD Panel Unit

Adrian J Cotterill, Editor-in-Chief

The Wall Street Journal is reporting (and before yet-another-Asian-screen-manufacturer tries to sue us) that, we quote Troubled Japanese electronics provider plans to ask government-supported investment fund for help”.

The story says that Sharp Corp. is looking to spin off part of its panel-making unit and also plans to ask a government-supported investment fund for help.

The unit to be spun off would be the one that makes small- and medium-size liquid crystal display screens for smartphones.

Sharp is allegedly seeking a capital injection from Innovation Network Corp. of Japan, a fund overseen by the Ministry of Economy, Trade and Industry that was created to support the country’s electronics industry. The fund previously invested in Japan Display, which was created from a merger of panel operations of several other Japanese electronics giants (note that when this fund ‘created’ Japan Display in 2012 from the LCD units of Hitachi Ltd., Sony Corp. and Toshiba Corp., Sharp decided NOT to join).

The article says that Sharp is putting the finishing touches on its broader restructuring and had planned to unveil all in May BUT a person familiar with the situation said the company might actually announce the spinoff before then.

It’s well known that Foxconn, the Taiwanese electronics manufacturer officially known as Hon Hai Precision Industry Co., has also been exploring investment and partnership opportunities involving Sharp.


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