Sharp, a struggling electronics manufacturer, stated last Monday that it is trying to find the best way to reform their LCD panel business. Sharp also stated that as of the moment, the company has yet to come up with any major decision.
Kyodo News, alongside other media reports, stated that Sharp is planning to spin off their mid-size and small LCD panel business. These LCD panels are used in mobile devices like smartphones. This move is backed bythe Innovation Network Corporation of Japan’s (INCJ) ¥100 billion or US$840 million investment in Sharp viaa new subsidiary.
According to reports, INCJ would be able to control about 40% stake in the Sharp LCD subsidiary. However, Sharp has denied that there are any specific plans regarding its business.
Miyuki Nakayama, a Sharp spokeswoman, stated via email that their companyis currently considering many various options for critical structural reforms. This includes its LCD business, but no specific details regarding final decisions are available at this time.
The spokesperson added that Sharp is currently reviewing its management plan for the medium-term and the final results will be released in May.
In the company’s latest earnings release that covers nine months that ended last December 31, 2014, Sharp reported that their LCD business sales decreased to about 7.6%. Sharp blamed the recent foreign exchange fluctuations plus the decreasing prices for both mid-size and small LCD panels.