On June 27, 2022, Sharp announced that it would transform the major liquid crystal display (LCD) manufacturer "Sakai Display Products" (SDP, Sakai City) into a wholly-owned subsidiary for approximately US$296 million. Sharp previously held a 20% stake in SDP, which produces large

On June 27, 2022, Sharp announced that it would transform the major liquid crystal display (LCD) manufacturer "Sakai Display Products Company" (Sakai Display Products, SDP, Sakai City ) into a wholly-owned subsidiary for approximately US$296 million.

Sharp previously held a 20% stake in SDP, which produces large display panels for televisions in Sakai, near Osaka, Japan. The company acquired the remaining shares from a Samoan investment company (share exchange) in an 11.45-for-1 stock deal. SDP is a large manufacturer of LCD panels used in televisions. Sharp hopes to boost sales in the North American market by repurchasing SDP transferred during the operating crisis.

It is understood that Sharp invested approximately 430 billion yen in 2009 to create SDP's LCD panel factory, but the huge investment burden exposed its operating crisis. SDP was once a consolidated subsidiary of Sharp, but was later changed to operate jointly with Taiwan's Hon Hai Precision Industry Company and became an applicable company under the equity method.

html In June, at the business briefing meeting after the shareholders' meeting, Sharp CEO Wu Boxun said that SDP will be used as part of its role, and some of it will be converted into vehicle-mounted and computer-oriented products to gain new fields and customers, thereby stabilizing performance. It said the issuance would dilute Hon Hai Precision's shareholding in Sharp from 52.6% to 49.5%, marking the first time Sharp has fallen below the 50% mark since acquiring the Japanese electronics manufacturer in 2016.

Sharp said that Sharp sees this acquisition as an opportunity to start increasing the production of small and medium-sized panels to improve profitability. Whether Hon Hai Precision will continue to be regarded as Sharp's parent company will be determined later based on factors such as the composition of the board of directors.

(Source: IT Home)