TOKYO — Struggling electronics maker Sharp Corp. is considering selling off its mainstay liquid crystal display panel business, The Yomiuri Shimbun has learned.
According to sources, Sharp will likely spin off the LCD panel unit into a joint venture it plans to set up. The company intends to abandon its management stake in the business by reducing its capital contribution ratio to less than 50 percent.
Sharp will soon enter negotiations with Japan Display Inc., a major LCD panel maker, over the sell-off of the LCD panel business, the sources said.
Sharp has been leading the global market with its LCD panel business, but has scaled down the business to focus on small and midsize LCD panels for smartphones.
Japan Display was established in 2012 through the integration of the LCD panel businesses of major electronics makers, including Sony Corp. and Toshiba Corp. If Japan Display injects capital into Sharp’s LCD panel business to create a larger Japanese LCD panel maker alliance, their combined small and midsize LCD panels will secure a global market share of more than 30 percent.
Sharp also plans to discuss the sell-off of its LCD panel business with Taiwan’s Hon Hai Precision Industry Co., the sources said.
Sharp’s LCD panel business accounts for nearly 30 percent of its sales. Due to the slowdown of the Chinese economy, Chinese smartphone makers — to which Sharp supplies LCD panels — have seen a decline in sales.
