• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About Strata-gee
  • Contact Us
  • Free Newsletter
  • Sponsor Strata-gee
  • Privacy Policy

Strata-gee.com

Strategy in TECH...

Register for CEDIA Expo
AudioControl Single Zone Amps
What Savant Can Do
Sonance James Small Aperture Series
  • Latest Posts
  • Strategy
  • Technology
  • Products
  • People
  • Statistics
  • Financial
  • Legal
  • Economic
  • Events
You are here: Home / General Topics / Sharp-Foxconn Joint Venture LCD Factory Falls into Sea of Red Ink

Sharp-Foxconn Joint Venture LCD Factory Falls into Sea of Red Ink

April 17, 2013 by Ted Leave a Comment

Arial photo of Sharp factory
Sharp/Hon Hai Sakai LCD Factory

The giant LCD panel manufacturing plant built by Sharp Corp. and now a joint venture between Sharp and Hon Hai Precision Industry Co., Foxconn’s parent company, has reported that it generated a net loss of ¥7.4 billion ($75.7 million) for the April-December fiscal period. The news is another indicator of the degree of desperation that Sharp is facing in trying to turn around its financial condition which, like many Japanese manufacturers has struggled as a result of the global slowdown and declining profitability.

See why Sharp suggests that the situation is improving…


The plant, located in Sakai, Osaka Prefecture, Japan, was once the pride of Sharp who built it several years ago to create the largest world-class LCD panel manufacturing facility with the latest generation LCD panel production technology to gain a cost advantage over competitors. However, shortly after launching this plant, the industry fell into a protracted period of intensifying competition from powerful Korean companies like Samsung and LG. This competition caused a price war that deflated profits from their television division – and at the same time, a global recession caused a drop-off in consumer demand.

As Sharp’s fortunes declined, they began a campaign to find a partner to share the load of this plant for mutual opportunity. Eventually, they worked out a deal with Hon Hai who was looking for direct access to a supply of LCD production. This is the first financial report since that partnership was completed last year.

AudioControl Single Zone Amps
Reister for CEDIA Expo
Sonance James Small Aperture
Savant

The jointly owned company that runs the plant, Sakai Display Products Corp., also reported that they had booked an operating loss of ¥3.3 billion on total sales of ¥108.6 billion for the period. While these numbers are undoubtedly a disappointment for Sharp and Hon Hai, the company has said it was, in fact, making progress.

According to a report by the Japan Times, the loss was primarily due to low levels of factory utilization early in the reporting period. During the April-June quarter, this large factory was only operating at a 30% level due to sluggish demand for LCD TVs.

However, panel sales picked up in the wake of the partnership with Hon Hai in July and carried forward through December. Unfortunately, the pick up was not enough to offset the losses generated during that fiscal first quarter.


AudioControl Single Zone Amps
Register for CEDIA Expo
Sonance James Small Aperture
Savant

Share this post:

  • Tweet
  • Click to share on Reddit (Opens in new window) Reddit
  • More
  • Click to email a link to a friend (Opens in new window) Email
  • Click to print (Opens in new window) Print

Like this:

Like Loading...

Related

Filed Under: General Topics

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Search

Sign-Up for Our FREE Newsletter

loader

Latest Posts

T-Day+1: Tariffs…And So It Begins…

**NEW Update 7/11/25** - See Updated Tariff Programs from Around the … [Read More...] about T-Day+1: Tariffs…And So It Begins…

Latest Financial Results for Samsung and LG Show Impact of Trade Troubles

Two major South Korean tech behemoths, Samsung Electronics and LG Electronics, … [Read More...] about Latest Financial Results for Samsung and LG Show Impact of Trade Troubles

  • T-Day+1: Tariffs…And So It Begins…
  • Tariffs: New Business Survey Shows Companies are Already Feeling the Pain
  • Harman Luxury Audio Group Names Progressive Custom Integration as Rep for 7 Territories
  • Happy Independence Day!

Categories

Sponsors

Crestron Register for Expo
AudioControl Single Zone Amps
Sonance James Small Aperture
Savant
Oasys Residential Technology Group

Tag Cloud

acquisition Amazon Apple AudioControl B&W Bowers & Wilkins CEDIA CEDIA Expo CES Control4 Core Brands COVID-19 Crestron D&M Holdings Denon Emerald Expositions Foxconn Gibson Brands Gibson Guitar Google headphones Henry Juszkiewicz Hon Hai Precision Industry Co. housing starts Integra Joe Kiani LG Masimo Nortek OLED Onkyo Panasonic patent infringement Pioneer Samsung Savant Sharp smart home SnapAV Snap One Sonos Sony Sound United SpeakerCraft Toshiba

Footer

Got News?

HEY PR & Marketing Pros: Have NEWS for Strata-gee readers?

Send it to: HotNews@strata-gee.com

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Sponsor Strata-gee

Strata-gee Ads

Archives

Translate

Ted Green Bio

A former dealer, manufacturer, distributor & more. Focusing on business strategy, my goal is to help you make better decisions for greater success.

Follow Ted Green

  • Facebook
  • X
  • LinkedIn
  • Instagram

Copyright © 2025 Strata-gee.com · The Stratecon Group, Inc. All Rights Reserved · Log in

%d