The Impacts of the Sharp-Foxconn Deal on the Global FPD Industry

• Publication date: April 2012

Nearly 100 years after its establishment, Sharp announced on March 27, 2012 that the company would issue new shares to Taiwanese leading EMS (Electronics Manufacturing Service) provider Foxconn and make the latter Sharp's largest shareholder. In addition, Sharp will also transfer an over 40% of additional stake in the SDP (Sharp Display Products) unit that owns a10G LCD panel production line to Foxconn's founder Terry Gou. In the face of fast-cha...

Nearly 100 years after its establishment, Sharp announced on March 27, 2012 that the company would issue new shares to Taiwanese leading EMS (Electronics Manufacturing Service) provider Foxconn and make the latter Sharp's largest shareholder. In addition, Sharp will also transfer an over 40% of additional stake in the SDP (Sharp Display Products) unit that owns a10G LCD panel production line to Foxconn's founder Terry Gou. In the face of fast-changing industry environment, taking the advantage of its technology expertise, Sharp initiated a cross-national partnership for a first time with an EMS provider in order to create a new business model and at the same time solve the loss of profit situation. This report provides insight into the impacts of Sharp and Foxconn partnership on the global flat panel display industry trends.

Television Broadcasting Industry in Taiwan

Table of Contents

1. Background
2. Sharp's Major Challenges
2.1 Deadlock in the Global LCD TV Market
2.1.1Global LCD TV Market Growth Sees Slowdown
2.1.2 Sharp's Market Share in Emerging Markets Dwindles
2.2 LCD TV Business Development Constrained
2.2.1 Customer Portfolios Affect the Stability of Order Placement
2.2.2 Demand for Large-sized LCD TVs Yet to be Observed
2.3 Business Transformations Encounter Challenges
2.3.1 Investment in High-end Panel Production Line Places a Heavy Burden
2.3.2 Diversified Business Strategy Yet to Boost Growth
2.4 Sharp-Foxconn Ongoing Partnership in Other Areas
3.Conclusion
Appendix
List of Topics
- Profiling the background of Sharp-Foxconn deal
- Elaborating Sharp's current major challenges in the global LCD TV market
- Reasons behind the Sharp-Foxconn collaboration and the impacts of the said collaboration on the flat panel display trends.
- Companies and organizations analyzed or mentioned in the report include:Changhong, Foxconn, Haier, Hisense, Konda, LG, Q-Run Holdings, Samsung, Sharp, Skyworth, Sony, TCL