Sharp

Basic Information

Stock Code
6753
Industry
Electrical Equipment
Category Detail
Diversified Electrical Equipment
Prefecture
Osaka Prefecture
Establishment Year
May 1935
Listing Year
May 1949
Official Website
https://corporate.jp.sharp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hitachi, Mitsubishi Electric, NEC, Fujitsu, Panasonic HD, Sony Group, Nissan Motor

Overview

Sharp Corporation, founded in 1935, is a Japanese electrical equipment manufacturer. It has expanded globally based on LCD technology and, as a subsidiary of Hon Hai Precision Industry (Foxconn), produces a wide range of electronic components and home appliances.

Current Situation

Sharp recorded consolidated net sales of approximately 2.5 trillion yen, operating income of approximately 84.7 billion yen, and net income of approximately 74 billion yen for the fiscal year ended March 2022. Its mainstay LCD panel business is improving production efficiency while scaling down LCD panel production by the end of 2024, shifting focus to electronic components and health-related products. With support from Hon Hai Precision Industry, it is headquartered in Sakai City, advancing management reforms and organizational restructuring. It is also focusing on technological innovation, promoting AI-equipped product development, environmentally friendly product development, and energy-saving production processes. Through strengthening its management foundation and digital transformation, it aims for sustainable growth by 2030.

Trivia

Interesting Facts

  • Company name derives from the mechanical pencil invented by the founder.
  • Globally known as Sharp of LCD technology.
  • Historical development of the first home microwave oven by founder Tokuji Hayakawa.
  • Operates one of the world's largest 10th-generation LCD panel factories.
  • Manufactured Japan's first front-loading VHS video deck.
  • Promotes proprietary biomimetics technology 'Nature Technology.'
  • Influential globally by licensing LCD technology to South Korea and Taiwan.
  • Successfully restructured under Hon Hai Precision Industry.
  • Electronic dictionary 'Brain' holds top domestic market share.
  • Once received an order from the Consumer Affairs Agency regarding Plasma Cluster claims on vacuum cleaners.

Hidden Connections

  • Introduced Taiwanese management expertise through capital and business alliance with Hon Hai Precision Industry.
  • Maintains multiple electronic component supply relationships with major Japanese automakers.
  • Sports collaboration as uniform sponsor for Cerezo Osaka.
  • Unique corporate culture where many past presidents were related by blood.
  • Advanced PC business reorganization by acquiring shares in Toshiba Client Solutions.
  • Influential in Japan's high-function LCD TVs and U.S. broadcasting technology.
  • Dominates as a major player in Japan's multifunction device market.
  • The 1970s CM slogan 'The knack is in spotting it, Sharp, right?' is an industry staple.

Future Outlook

Growth Drivers

  • Expansion of smart appliance market through AI and IoT integration
  • Response to surging demand for 5G and next-generation communication equipment
  • Strengthening of environmental and energy-saving technologies
  • Development and application of high-function materials in electronic components
  • Overseas market development via global network
  • Growth in healthcare and wellness-related products
  • Increasing demand for sustainable products
  • Strategic reorganization of business portfolio

Strategic Goals

  • Shift focus from LCDs to electronic components and health devices for revenue diversification
  • Increase sales ratio of AI-equipped products to over 30% of total
  • Further improve environmental performance of green products to maintain industry leadership
  • Expand overseas sales ratio to over 50% to strengthen global competitiveness
  • Promote asset lightening of business bases to improve capital efficiency
  • Accelerate new business development speed to become market leader
  • Enhance employee capability development and comfortable work environment
  • Strengthen supply chain resilience and promote digitalization
  • Expand company-wide initiatives for social contributions and sustainability
  • Continuously achieve improvements in customer satisfaction and brand value

Business Segments

Electronic Components Manufacturing

Overview
Provides a wide variety of electronic components leveraging advanced LCD and semiconductor technologies.
Competitiveness
Proprietary high-precision LCD technology and IGZO expertise.
Customers
  • Smartphone manufacturers
  • Home appliance manufacturers
  • Automotive manufacturers
  • Industrial equipment manufacturers
  • Semiconductor manufacturers
Products
  • LCD panels
  • IGZO panels
  • Image sensors
  • Semiconductor devices
  • Touch panels

Information and Communication Equipment

Overview
Designs, manufactures, and sells wired and wireless communication equipment and systems.
Competitiveness
Long-standing communication technology and reliable solutions.
Customers
  • Telecom carriers
  • Corporate networks
  • Public institutions
  • Communication equipment distributors
Products
  • Communication devices
  • Receivers
  • Switches
  • Routers
  • Antennas

Business OA Equipment

Overview
Provides advanced OA equipment to support office efficiency.
Competitiveness
Total solutions with multifunction products and services.
Customers
  • Corporate offices
  • Educational institutions
  • Government offices
Products
  • Multifunction devices
  • Printers
  • Scanners
  • Electronic whiteboards
  • Digital signage

Business Robots

Overview
Develops and manufactures service robots specialized for business support.
Competitiveness
Proprietary robot technology and adaptability to various business applications.
Customers
  • Security companies
  • Customer service businesses
  • Logistics companies
Products
  • Service robots
  • Business walking assistance robots

Solar Power Systems

Overview
Manufactures environmentally friendly solar power generation and related products.
Competitiveness
High-efficiency solar cells and environmental technologies.
Customers
  • Construction companies
  • Energy companies
  • Factories
Products
  • Solar cell panels
  • Solar panel systems

Cooking and Lifestyle Appliances

Overview
Provides innovative home appliances for comfortable living.
Competitiveness
High-quality energy-saving technology and creative functions.
Customers
  • Appliance retailers
  • Food service industry
  • Hospitality industry
Products
  • Microwave ovens
  • Refrigerators
  • Air purifiers
  • Vacuum cleaners
  • Washing machines

PCs and Peripherals

Overview
Offers a wide range of PC products to support information processing.
Competitiveness
Vivid display devices leveraging LCD technology.
Customers
  • Corporations
  • Educational institutions
  • Individual users
Products
  • Notebook PCs
  • Tablet devices
  • Printers

Electronic Equipment Maintenance and Support

Overview
Maintenance business aimed at improving product reliability.
Competitiveness
Nationwide support network.
Customers
  • General consumers
  • Corporate users
  • Public institutions
Products
  • Product maintenance services
  • Technical support
  • Parts supply

Hygiene Products Manufacturing

Overview
Expanding high-quality mask production for COVID-19 countermeasures.
Competitiveness
Rapid production ramp-up and quality control.
Customers
  • Medical institutions
  • General retail
  • Restaurants
Products
  • Masks
  • Hygiene consumables

Industrial Solar Power Systems

Overview
Provides environmentally friendly solar power for industrial facilities.
Competitiveness
Integrated energy solution technology.
Customers
  • Factories
  • Commercial facilities
  • Public facilities
Products
  • Industrial solar systems
  • Energy management systems

AI-Related Product Development

Overview
R&D of advanced product lineup equipped with AI technology.
Competitiveness
Advanced AI applications integrated with LCD technology.
Customers
  • Manufacturing industry
  • ICT companies
  • Service industry
Products
  • AI appliances
  • Image processing LSIs
  • Voice recognition technology

Business Electronic Equipment

Overview
Provides high-reliability electronic equipment to support business efficiency.
Competitiveness
Strong customer base and advanced technology.
Customers
  • Convenience stores
  • Financial institutions
  • Government offices
Products
  • Electronic registers
  • Business copiers
  • Digital signage systems

Competitive Advantage

Strengths

  • Advanced LCD display technology and core IGZO technology
  • Diverse home appliance portfolio and brand building
  • Capital and management support from Foxconn Group
  • Global manufacturing and sales network
  • Proprietary biomimetics technology 'Nature Technology'
  • Strong R&D capabilities and tradition of technological innovation

Competitive Advantages

  • Market leadership in high-quality 8K and 4K LCD TVs
  • Innovative appliance technologies (Water Oven, Plasma Cluster)
  • Supply system for diverse business equipment and components
  • Financial stabilization through Foxconn capital injection and management reforms
  • Customer needs responsiveness with broad product lineup
  • Robust domestic and international supply chain network

Threats

  • Intense international competition and price wars in LCD panel market
  • Competitive pressure from technology leakage and emerging rival technologies
  • Demand uncertainty due to global economic fluctuations
  • Impact of exchange rate fluctuations on costs and profit margins
  • Increased burdens from strengthened sustainability regulations
  • Risks of global supply chain disruptions
  • Declining domestic demand due to population decrease and market maturity
  • Rapid technological changes in digital appliances and potential response delays

Innovations

2020: Spin-off of Sharp Display Technology

Overview
Implemented spin-off to improve LCD panel business efficiency and secure funding.
Impact
Achieved improved management efficiency and strengthened funding base.

2021: Spin-off of Camera Module Business

Overview
Spin-off to strengthen business leveraging advanced image sensor technology.
Impact
Contributes to enhanced specialization and market responsiveness.

2022: Expansion of AI-Equipped Appliance Development and Promotion

Overview
Launched home appliances such as microwaves equipped with artificial intelligence technology.
Impact
Improved product competitiveness and created new markets.

2023: Collaboration with SoftBank, Sekisui Chemical, and KDDI

Overview
Basic agreement on factory land sale and AI data center construction.
Impact
Asset lightening and revenue diversification.

2024: Cessation of LCD Panel Production for TVs

Overview
Ended LCD panel production for TVs at Sakai plant in August 2024.
Impact
Enables concentration of management resources on growth areas.

Sustainability

  • 100% wastewater reuse at factories to reduce environmental impact
  • Introduction and expansion of solar power generation systems
  • Enhanced energy-saving and resource-saving product design
  • Application of Plasma Cluster technology for environmental improvement
  • Promotion of environmental conservation activities in collaboration with local communities