On March 27th, Sharp Corporation announced in Japan that it would sell 10% of the shares to Taiwan's Hon Hai Group to obtain a capital increase of 67 billion yen (about 5.2 billion yuan). This means that Hon Hai Group will surpass Japan Life Insurance Company, become the largest shareholder of Sharp Corporation, and the largest foreign shareholder.
At the same time, it is announced that Sharp Managing Director Okuda Takashi will officially become the new president of Sharp on April 1. Okuda pointed out that the introduction of Hon Hai was due to the huge losses incurred by Sharp in 2011. The deficit amounted to the highest record of Sharp's 100-year history, reaching 290 billion yen (about 22.3 billion yuan). “We need new funds to improve our business base. We also need new partners to help us improve our market, and Hon Hai Group is the best partner we are looking forward to.â€
Sharp lack of money
In January of this year, Sharp Corporation announced that it has hardly earned a penny for the TV industry for so many years, and it is a deficit every year, and it has dragged down the operating performance of the entire group. Sharp's final report shows that the company will have a huge deficit of 290 billion yen in the fiscal year ending March this year.
The 290 billion yen deficit is not a big burden for Sharp, a world-class home appliance manufacturer. However, Sharp is in the business, and there is another inside story. That is, when the LCD TVs were sold both at home and abroad, Sharp Corporation made a big effort to buy 120 hectares of land in the city of Osaka, Osaka, to build the world's largest LCD screen production base.
The base was started in 2006 and was built in 2009, in the midst of a global financial crisis. Originally, the project that made Sharp the most proud of it turned out to be a big bag that you can't throw away. In recent years, the sluggishness of the world semiconductor market has made Sharp more difficult. At the same time as the income is decreasing, the bank loans owed by the new factory can't be lost.
In a word, Sharp lacks money.
The only way to make money is to sell more quality LCD screens produced by the Bengbu factory. However, Sharp has encountered "love rivals" - South Korea's Samsung and LG.
On March 16, Apple's new iPad was announced to be sold in 10 countries and regions around the world. Due to the time difference, Japan became the second country in the world to sell a new version of the iPad. However, just two days ago, Sharp was hit by a market rumor, and its share price plummeted by 5%. The rumor said that Apple has decided to select Samsung as the sole supplier of LCD screens.
Sharp is one of Apple's LCD screen suppliers, but its annual supply share is only about 25% of Apple's. If these 25% are lost, then the new Bengbu factory means that there is a shortage of rice. In fact, since November last year, due to the large reduction in orders, the production capacity of the Bengbu factory has been reduced by 30%.
Sharp feels the pain of the market. Okuda’s heart is very clear, if Sharp’s LCD screen sells Samsung, then it will only be closed.
Hon Hai Cheng's best lover
Who are you looking for to sell Sharp's LCD screen? Okuda thought of one person: Guo Taiming, chairman of Taiwan Hon Hai Group.
As a foundry company, Hon Hai is known for making iPhones and iPads that are popular in the world for Apple. The Hon Hai Group, a subsidiary of Hon Hai Group that makes iPhones and iPads, is a "Foxconn" that is often misunderstood as a Japanese-owned company.
The calculation of Oda's new president is that as long as Guo Taiming is settled and Foxconn adopts Sharp's LCD screen, Sharp will be saved.
Guo Taiming has a bitter heart, he also counted an account, Foxconn made Apple and iPad for Apple, Apple made a fortune because of Foxconn's cheap labor, but, "My profit is actually only 2%." For a company, "2%" is equal to no profit. Guo Taiming became an uncompromising "white-skinned wage earner".
Although Guo Taiming has moved the factory from the coastal areas where the salary has risen to the inland several times, it still can't resist the rise in material prices and the increase in personnel expenses. He is already afraid of bargaining with Apple. The only idea is to collect cheap and high-quality parts around the world. He also thought of Sharp. "If Sharp's LCD screen can be sold at a price lower than Samsung and LG, then 2% of profits may rise to 4%." The savvy entrepreneur flew to Tokyo in mid-February.
Sharp lacks money and lacks market, Hon Hai has money to ask for materials, which is doomed to "Tokyo's covenant" is a "century marriage contract" at first sight. Sharp decided to transfer 10% of the company's equity to Hon Hai, Hon Hai invested 67 billion yen (about 5.2 billion yuan) to Sharp; Sharp Company will hand over half of the operation of the Bengbu factory to Hon Hai, and Hon Hai guarantee Acquired 50% of the products produced by the Bengbu factory.
On the 27th, after the "marriage contract" was announced at the press conference, all Japanese media were relieved. No one felt that such cooperation had lost the face of Japanese home appliance companies, although Hon Hai became Sharp's largest shareholder. However, Hon Hai decided not to send a director to the Sharp Board of Directors. This is a good illustration of Hon Hai’s 67 billion yen, which is only a “dowry†for Sharp, not a rope tied to Sharp.
In the context of the increasingly difficult world semiconductor market, Sharp and Hon Hai's "market-based cooperation" will save the two companies and find a new way for the development of the world's semiconductor industry.
At the same time, it is announced that Sharp Managing Director Okuda Takashi will officially become the new president of Sharp on April 1. Okuda pointed out that the introduction of Hon Hai was due to the huge losses incurred by Sharp in 2011. The deficit amounted to the highest record of Sharp's 100-year history, reaching 290 billion yen (about 22.3 billion yuan). “We need new funds to improve our business base. We also need new partners to help us improve our market, and Hon Hai Group is the best partner we are looking forward to.â€
Sharp lack of money
In January of this year, Sharp Corporation announced that it has hardly earned a penny for the TV industry for so many years, and it is a deficit every year, and it has dragged down the operating performance of the entire group. Sharp's final report shows that the company will have a huge deficit of 290 billion yen in the fiscal year ending March this year.
The 290 billion yen deficit is not a big burden for Sharp, a world-class home appliance manufacturer. However, Sharp is in the business, and there is another inside story. That is, when the LCD TVs were sold both at home and abroad, Sharp Corporation made a big effort to buy 120 hectares of land in the city of Osaka, Osaka, to build the world's largest LCD screen production base.
The base was started in 2006 and was built in 2009, in the midst of a global financial crisis. Originally, the project that made Sharp the most proud of it turned out to be a big bag that you can't throw away. In recent years, the sluggishness of the world semiconductor market has made Sharp more difficult. At the same time as the income is decreasing, the bank loans owed by the new factory can't be lost.
In a word, Sharp lacks money.
The only way to make money is to sell more quality LCD screens produced by the Bengbu factory. However, Sharp has encountered "love rivals" - South Korea's Samsung and LG.
On March 16, Apple's new iPad was announced to be sold in 10 countries and regions around the world. Due to the time difference, Japan became the second country in the world to sell a new version of the iPad. However, just two days ago, Sharp was hit by a market rumor, and its share price plummeted by 5%. The rumor said that Apple has decided to select Samsung as the sole supplier of LCD screens.
Sharp is one of Apple's LCD screen suppliers, but its annual supply share is only about 25% of Apple's. If these 25% are lost, then the new Bengbu factory means that there is a shortage of rice. In fact, since November last year, due to the large reduction in orders, the production capacity of the Bengbu factory has been reduced by 30%.
Sharp feels the pain of the market. Okuda’s heart is very clear, if Sharp’s LCD screen sells Samsung, then it will only be closed.
Hon Hai Cheng's best lover
Who are you looking for to sell Sharp's LCD screen? Okuda thought of one person: Guo Taiming, chairman of Taiwan Hon Hai Group.
As a foundry company, Hon Hai is known for making iPhones and iPads that are popular in the world for Apple. The Hon Hai Group, a subsidiary of Hon Hai Group that makes iPhones and iPads, is a "Foxconn" that is often misunderstood as a Japanese-owned company.
The calculation of Oda's new president is that as long as Guo Taiming is settled and Foxconn adopts Sharp's LCD screen, Sharp will be saved.
Guo Taiming has a bitter heart, he also counted an account, Foxconn made Apple and iPad for Apple, Apple made a fortune because of Foxconn's cheap labor, but, "My profit is actually only 2%." For a company, "2%" is equal to no profit. Guo Taiming became an uncompromising "white-skinned wage earner".
Although Guo Taiming has moved the factory from the coastal areas where the salary has risen to the inland several times, it still can't resist the rise in material prices and the increase in personnel expenses. He is already afraid of bargaining with Apple. The only idea is to collect cheap and high-quality parts around the world. He also thought of Sharp. "If Sharp's LCD screen can be sold at a price lower than Samsung and LG, then 2% of profits may rise to 4%." The savvy entrepreneur flew to Tokyo in mid-February.
Sharp lacks money and lacks market, Hon Hai has money to ask for materials, which is doomed to "Tokyo's covenant" is a "century marriage contract" at first sight. Sharp decided to transfer 10% of the company's equity to Hon Hai, Hon Hai invested 67 billion yen (about 5.2 billion yuan) to Sharp; Sharp Company will hand over half of the operation of the Bengbu factory to Hon Hai, and Hon Hai guarantee Acquired 50% of the products produced by the Bengbu factory.
On the 27th, after the "marriage contract" was announced at the press conference, all Japanese media were relieved. No one felt that such cooperation had lost the face of Japanese home appliance companies, although Hon Hai became Sharp's largest shareholder. However, Hon Hai decided not to send a director to the Sharp Board of Directors. This is a good illustration of Hon Hai’s 67 billion yen, which is only a “dowry†for Sharp, not a rope tied to Sharp.
In the context of the increasingly difficult world semiconductor market, Sharp and Hon Hai's "market-based cooperation" will save the two companies and find a new way for the development of the world's semiconductor industry.
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