Sharp will build a new factory, move production to Vietnam

Sharp's new factory will be built on the outskirts of Ho Chi Minh City and is expected to start operations in fiscal 2020, the investment capital of which is not disclosed by the group. However, according to the Nikkei newspaper, Sharp will establish a joint venture subsidiary in Vietnam with a capital of 2.7 billion yen (equivalent to 25 million USD) in February 2020. Sharp Vice Chairman Katsuaki Nomura said the new plant's goal is to deal with the likely protracted U.S.-China trade war.

Sharp's new factory in Vietnam will produce screens for automobiles for export to the US market and air purifiers for sale in the Vietnamese market. In addition to the new factory, Sharp is considering moving a subsidiary specializing in manufacturing computers with components made and assembled mostly in Hangzhou (China) to Vietnam.

Sharp's data released on August 1 showed that the company's consolidated net profit from April to June 2019 fell by 35% and revenue fell by 4%. This is the first time that Sharp's revenue and profit have decreased since it was placed under the financial support of Honhai Group (Honghai), Taiwan (China) - Foxconn's parent company since August 2016.

The sharp decline in TV sales in China and Apple's iPhones, which Sharp is involved in supplying components, have affected the electronics company's profits and revenues in recent years. However, from the third quarter, Sharp will restore sales to Apple, as well as the home devices business has stable growth, so it predicts the end of the fiscal year in March 2020. Sharp's revenue and profit will not decline much this year.