Sharp confirms cooperation with China electronic Information Industry Group

Absrtact: To make the financial results more attractive, Sharp began a new wave of action. June 27, Sharp confirmed the cooperation with China Electronic Information Industry Group (CEC), will be launched in Nanjing 8.5 generation Line, of which CEC contributed 92%, sharp accounted for 8%, the company registered capital of 17.5 billion yuan,

To make the earnings look better, sharp began a new wave of action.

June 27, Sharp confirmed the cooperation with China Electronic Information Industry Group (CEC), will be launched in Nanjing 8.5 generation Line, of which CEC contributed 92%, sharp accounted for 8%, the company registered capital of 17.5 billion yuan, sharp can be purchased by the joint venture company produced with price competitiveness, high value-added LCD panels. This is the first time for sharp to export the core Panel technology.

In recent years, the LCD business seriously dragged Sharp's earnings, so Sharp had to start to the business of lightweight treatment. Previously, Sharp has been with Samsung, Qualcomm and Lenovo have carried out different degrees of cooperation.

July 2, New Jin Sharp (China) investment Chairman New extended an interview, sharp output technology and other manufacturers to establish a production base to provide a stable supply, is sharp future treatment of the loss of liquid crystal business basic policy.

Before that, Sharp also explored new areas to achieve diversification development. New extension A pair of newspaper reporter said, sharp for the new business areas set up a special career promotion department to follow up.

Sharp's loss is due to a big business illness, Kang, the new boss of Sharp's annual shareholder meeting, June 25, and sharp is determined to change everything to treat the company.

Whether Sharp's new redemption will be successful will take time to answer.

Lightweight liquid crystal Business

According to reports, Sharp and CEC cooperation of the new plant scheduled to start in August this year, and in June 2015, the main production for televisions, monitors, laptops and tablets LCD panels, expected monthly capacity will reach 60,000.

The two sides also had a precedent for cooperation. September 2009, Sharp Japan and Nanjing People's government, CLP Group signed an agreement to sell 13.8 billion yuan Sharp 6 generation line, this is the first time for sharp to transfer more than 5 generation LCD panel production line in mainland China.

and relative to the 09 cooperation is to sell sharp out of production capacity, the bright spot of the cooperation is sharp joint venture and equity participation, which for Sharp's liquid crystal business has taken the first step.

Liquid crystal for the "father of the liquid crystal" sharp is already one of the most serious loss of business. The 2012 earnings report showed sharp sales of 2.4785 trillion yen, net profit of 545.3 billion yen, the record of the highest loss since the establishment of sharp in the hundred years, where the LCD panel business "contribution" is very large-operating loss of 138.9 billion yen.

"Sharp Group liquid crystal Business Overall approach is the asset lightweight, the establishment of factories need to invest a lot of assets." "So far, Sharp has built a number of factories, including the Sakaisuji plant, but the balance sheet will be huge in order to create the factories that need to be mobilized," said a new source.

"The fundamental point of asset lightness is to try not to inflate the balance sheet and to achieve a stable level of product supply." "The new firm believes that the size of the joint venture will require 17.5 billion yuan, compared to 8% of the shares under the 1.4 billion yuan, can be business cooperation and procurement of new factory panels, the effect of the same."

"LCD business is a very high cost of the field, in the future we will change the policy and seek more cooperation." "The new original extension one said, this kind of cooperation includes the other side out the fund sharp out the technology, the cooperation establishes the production base, thus stably provides the source." "This is the basic policy of sharp in the field of liquid crystal business. The new original stretched a pair of reporters said.

It is understood that IGZO technology is not sharp unique, sharp is the first IGZO technology LCD panel production of enterprises, but also the earliest practical application of the product Igzo panel of one of the enterprises. Sharp this focus will provide IGZO and other liquid crystal technology, the use of CEC technology charges, but the new extension of a pair of newspaper reporter said that the specific amount of inconvenience disclosed.

Sharp's road to the future

Prior to that, there is a media forecast of 2015 China will have 8 8.5 generation line with Taiwan competition. DisplaySearch China market director Bing accepted this reporter interview, said, now this industry overcapacity, for Sharp, the Haikou problem is still difficult to solve.

Bing that, sharp and other manufacturers have been relatively conservative cooperation, the current equipment has not moved into the factory, all the uncertainty, there is no way to determine whether the sharp and CEC's marriage in the technical cooperation of the scale will become larger.

In addition to the CEC set up a joint venture, Sharp had previously and Samsung, Qualcomm and Lenovo to different degrees of cooperation: Samsung investment 112 million U.S. dollars, and with Sharp signed a strategic cooperation agreement; Qualcomm Investment Sharp 120 million U.S. dollars to jointly develop MEMS (micro-electrical system) display technology; And Lenovo is a cooperative launch of smart television products. However, before the uproar, "Lenovo will buy sharp Nanjing factory," the new original extension of a pair of this expressed a denial.

However, alliances is clearly the sharp LCD business strategy. At present Sharp's shareholding structure, Qualcomm and Samsung respectively hold 3.53% and 3.01% of the shares.

In addition, in the 2013-2015-year medium-term business plan issued by sharp on May 16, five new areas of development have been established: health care, robotics, intelligent residential vehicles, water and air relief engineering and education.

The reporter learned that Sharp's current initiative is to the liquid crystal and home appliances in the field of technology applications to completely unrelated new areas. For example, the advanced lighting technology developed for the TV screen backlight can be used for crop-season crops, and sharp will enter the industrial cleaning robot market based on the "Cocorobo" household intelligent vacuum cleaner, which can be used for the maintenance of railway stations and offices.

New extension A pair of this newspaper said that sharp in May and a large Japanese electric manufacturers to cooperate in the production of robots, the other company in its original technology based on the addition of sharp technology for production planning and sales.

"On the day of the medium-term business plan release, in order to face five new business areas, we have set up a career promotion department, and vice president of the management of the business, is responsible for specific in these five directions to advance progress." The new original stretched a pair of reporters said.

Bing said diversification for Sharp is a must-go route, in terms of efficiency and action lag, LCD business, such as the traditional low gross margin of the industry has been very difficult. "In these non liquid crystal areas, Japanese companies have accumulated a lot, so there is no possibility of development prospects." "Bing said.