January 09, 2025

Sharp China settles in Shenzhen Foxconn is about to reorganize its internal business

After being acquired by China Foxconn Group, the business of Sharp Corporation of Japan showed a new look. According to the latest news of the Nikkei News, Sharp will reorganize its business in China.

Sharp China settled in Shenzhen Foxconn, will reorganize its internal business

According to reports, Sharp announced on Thursday that early next year, Sharp will set up a wholly-owned subsidiary to lead all of Sharp's business operations in China.

Sharp's Chinese subsidiary will be located in the Longhua area of ​​Shenzhen, which is the current manufacturing base of the Foxconn Group. In this way, in the Chinese market, Japan's Sharp and its parent company, Foxconn Group, will be able to work more closely together.

In August of this year, Foxconn confirmed that the acquisition of Sharp's transaction has been approved by the Chinese government's anti-monopoly department, and Foxconn immediately completed the injection of Sharp. With the injection of funds, Foxconn's various support measures have come, and Sharp's business has shown signs of renewed.

The outside world believes that the Foxconn Group's acquisition of Sharp, its most important assets are Sharp's liquid crystal technology and the ability to develop OLED (Organic Light Emitting Diode) display panels. A portion of Foxconn's injected funds will be used for the development of OLED panels. According to plans, Apple is preparing to adopt OLED screens in smartphones starting next year, so Foxconn will join forces with Sharp to compete for Apple's OLED screen orders.

The Foxconn Group is also reviving Sharp's other business in addition to display panels, and the group is helping Sharp products open up new markets in China and Taiwan. Foxconn even encouraged its employees to actively purchase Sharp's home appliances.

In September, after four years, Sharp once again launched a smartphone for the Chinese market. The new product is priced at the low end and the price is around RMB 1,500, mainly for the young people market.

It is well known that in recent years, under the competition of Chinese companies and South Korea's two major electronics giants, Japanese consumer electronics companies, including Sharp, have generally fallen into difficulties. Toshiba, Sony, Sharp and other brands have gradually shrunk their share in the TV and other markets. Many Japanese electronics companies have also begun major transformations, narrowing the proportion of electronic business, and beginning to enter the field of medical equipment, new energy, and large equipment.

According to reports, the Foxconn Group has said in the past that it will take advantage of the low-cost manufacturing advantages of the Chinese mainland, transfer some of Sharp's home appliance manufacturing business, and re-improve cost competitiveness.

In addition, in overseas markets, Foxconn Group is also encouraging Sharp to recapture the Sharp brand that was authorized by external companies in the past and re-develop its own branded home appliance business. However, before, China Hisense Group (Weibo) refused to submit the Sharp brand to the company in advance, and believed that both parties should act in accordance with the agreement.

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