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Hongxia cooperation revives LCD business

2019-09-30

Hongxia cooperation revives LCD business

Hon Hai and the Japanese home appliance manufacturer Sharp (Sharp) cooperation contract officially signed, both sides have considered eating a reassurance. When Hon Hai is optimistic about the orders of Sharp IGZO panels can solve the problem of Sharp LCD panel inventory, the Japanese side is still annoyed by the negotiation failure, and pointed out that Sharp's failure to rely too much on the LCD panel, the current situation has repeated the crisis.


The main purpose of Hon Hai's purchase of Sharp is Sharp's LCD panel technology. This point is specified in the contract between the two parties. In the event of an accident, Hon Hai has the right to preempt and purchase the Sharp LCD panel business, and the general analysis also points out Apple, which is behind the case, is also hoping to master Sharp's LCD panel.


There are also reports that Apple will add IGZO panel orders for the new iPad Pro, which will increase Sharp's IGZO panel orders to increase to 296% in 2015, reducing or even solving the problem of low utilization rate and inventory of Sharp LCD panel factory. This news seems to indicate that Hon Hai has purchased Sharp and there is indeed a way to solve Sharp's business problems.


However, for Sharp, there is still doubt about continuing to rely on the LCD panel business. After all, the Sharp LCD panel business is losing its production capacity higher than the market demand. Even if the buyer is found now, the LCD panel factory of the Luchang factory will be completed and put into operation in 2018. The problem of oversupply in the panel market will be more serious. Whether the issue of Sharp LCD panel sales will not be released at the end of 2014 will be repeated and worthy of observation.


On the other hand, Sharp is only sold due to economic difficulties, but before the signing of the contract, it has caused contingent debt problems, which led to Hon Hai’s bargaining. In addition, the margins that have been allocated so far are not freely available. For Sharp. The deal was not as cost-effective as originally expected, but it was helpless.


In other words, the current saying is just to let the resignees confess to the problem of responsibility in the shareholders' meeting. In the eyes of the Japanese, the high-level enterprise is still shirking responsibility at the moment of dying, rather than the responsible person in the drama. It’s ugly to look at the abdomen. Nowadays, a number of Japanese people's boycotts of Sharp's mentality from this instinct may be more than the accusation that they are selling to Taiwanese companies.

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