business

Sharp accepts bailout from Foxconn parent

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© 2016 AFP

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27 Comments
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won't be the last

5 ( +7 / -2 )

Good bye Aquos! :'(

5 ( +5 / -0 )

"......or the public-private Innovation Network Corporation of Japan (INCJ)...."

Hold it. Other news said that this was a Japanese state-run investment fond. They even put in the headlines that this is another defeat for the Japanese government. So, what are the facts? Looking at Wikipedia it also states: "he business and investments of INCJ are supervised by the Ministry of Economy, Trade and Industry of Japan (METI)."

If it is the way others report it, then, oh well, our top guys must be pretty upset again! Especially since it is a Taiwanese company!

3 ( +3 / -0 )

Just shows how much industry here in Japan trusts the Abe government to set things straight with the economy. Banks got bailouts during the Lehman-shock crash, TEPCO gets government funding, but truly make a viable offer for a company that ACTUALLY produces something.......yeah right.

1 ( +3 / -2 )

@sf2k yes I'm afraid the copy and make it cheaper and better generation is over in Japan.

Now is the time for innovation and reinveting new ideas thinking out the box.........
2 ( +2 / -0 )

wow thats some heavy stuff, before this was unthinkable, nuts with speakers in black vans yelling comes to mind. things must be pretty bad

5 ( +6 / -1 )

I can remember when Sharp were at the front with new electronic goods. That was per playstation and then China started offloading cheap good in the USA thanks to Bush señor push for China to join the WTO in 2000.It been all down hill since for Sharp. Sharp need to produce the next big thing in personal devices. When they took over Konica/Minolta cameras, they made a bad choice in changing the alloy body to plastic. With Konica/Minolta cameras they could of stay off Cannon emerging dominance. But choose to revamp a proven workhorse in the Dyna 7 and turn it into a lightweight Cannon copy.

0 ( +2 / -2 )

As you can imagine this is big news in Taiwan, former colony of Imperial Japan from 1895 - 1945. The TV networks in Taipei are rebroadcasting news segments over and over hailing this as a triumph for Foxconn CEO Terry Guo but also as the emergence of a new era of Taiwanese-Japanese relations. Note to pundits: Taiwan is not China, not part of China, and with a mindset much more in tune with the modern world than communist China.

0 ( +4 / -4 )

Sony next!

0 ( +3 / -3 )

I believe this deal will be a beginning of other coming deals to other Japanese companies on the way.This is very healthy,such companies uncompetitive,with loads of cash dept,government bail out more than once,better to let it go and save tax payers money.Yes,it pity to see a giant like Sharp comes to this fate,but more important making business and saving tax payers money.Its a smart step from Abe Shinzo government to let go.More competitive companies will exist with lower costs and making better profits.

0 ( +1 / -1 )

Note to pundits: Taiwan is not China, not part of China, and with a mindset much more in tune with the modern world than communist China.

Pundits aside, official name according to Wikipedia is Chinese-Taipei also called ROC Taiwan !

0 ( +0 / -0 )

@some14some, you got it wrong. The name forced on Taiwanese sports teams in intl events is "Chinese-Taiei". Of course its official name is Republic of China but everyone calls it Taiwan. More interesting is that the AFP article above never once mentioned the Foxconn CEO and hero du hour Terry Guo. Why not?

-3 ( +0 / -3 )

"Banks got bailouts during the Lehman-shock crash."

Indeed they did but the banks that needed and received the bailouts were not Japanese but US, UK, and others in Europe. The Lehman Shock had little impact on Japanese banks.

The headline of a September, 2008 New York Times article basically sums up what happened in Japan: In Japan, Financial Crisis Is Just a Ripple.

The major impact was on employment, especially contract workers, not on banks.

The big government bank bailouts took place a decade before the Lehman Shock.

-1 ( +0 / -1 )

Sounds like Foxconn is having second thoughts--they haven't signed an agreement yet, and now say they won't until they've investigated and resolved some new "material information."

2 ( +2 / -0 )

I worry about his money coming from China,This Mr.Kuo is a very strong pro china businessman in Taiwan, he like stepping into political field,he is a hard core supporter of KMT of Taiwan. He is very unpopular among Taiwanese.He is not a native Taiwanese,but a chinese Taiwanese. Open your eyes watching him.

-1 ( +0 / -1 )

Shame and very regrettable as Japanese bankers are not willing take risk to keep Sharp in the camp... Nissan, Sharp and what is next? Old Japanese non productive senior managers have to step down. They are nothing but dead weight!

0 ( +1 / -1 )

Sounds like Foxconn is having second thoughts--they haven't signed an agreement yet, and now say they won't until they've investigated and resolved some new "material information."

Sounds like they want to make sure they won't be stuck with unknown debt held by Sharp. Japanese companies are famous for creative accountings not much different from what China does to cook their books.

The world is flooded with LCD panels and China is currently building a huge factory. When they're finished constructing it, they'll flood and dump the market, forcing a collapse in price. Taiwan's Hon Hai is a third rate company which has no technology and this is a quick way to jump on a second rate technology from Sharp, however they'll get a rude awakening later when the market is flooded with cheap Chinese LCD's.

-3 ( +0 / -3 )

Taiwan's Hon Hai is a third rate company which has no technology

I think it probably has just a little production technology. Or doesn't that count?

0 ( +0 / -0 )

steep losses in their television units owing to stiff >competition from lower-cost rivals

Samsung and LG televisions have highly innovative features, sleek looks, and aren't any cheaper than Japanese sets.

I used to buy Sonys and Panasonics but when my last TV broke, I got a Samsung. Not for lower prices, but its features and its slick, one inch thick panel.

Stores these days are mostly stocked with cool looking Samsungs and LGs front and center, with a few sorry looking Sonys and Sharps and lower rung brands tucked to the corners. A big contrast to the old days when Sonys, Sharps and Hitachis were the premium brands.

-1 ( +1 / -2 )

Sharp's consumer products are complete pants, and I've not even started on their LCDs. Buy Korean.

0 ( +2 / -2 )

Shame and very regrettable as Japanese bankers are not >willing take risk to keep Sharp in the camp...

Why? It should be a business decision based on numbers, not nationalistic emotions.

Besides, Japanese companies own plenty of foreign firms too, and that is somehow okay?

-1 ( +0 / -1 )

This might not be a bad thing. Sharp is more likely better off bought by a Taiwanese company than Chinese or Korean. Hope there's better days ahead for Sharp and Hon Hai combined. 2 brains are better than one in the super competitive tech world today. Good luck!

0 ( +0 / -0 )

While the temptation is to lump Sharp together with other large Japanese corporations, I'm not sure how valid that is.

They were market leaders in solar panels and flat screen displays, invested very heavily in producing them, and then got burnt by cutthroat competition in both fields. Management definitely made mistakes, but they were an innovative company who invested positively in their strengths. I don't think you can say such tactics are typical of much of Japan Inc.

Blackberry and Nokia managed to blow great positions in the development of multi-feature mobile phones, so you don't need to be Japanese to fail at tech these days.

If you are interested, search for Can Sharp Pull Out of Its Nose-Dive for a fantastically detailed article about how the firm ended up where it did.

0 ( +0 / -0 )

globalwatcherFEB. 25, 2016 - 09:27PM JST Shame and very regrettable as Japanese bankers are not willing take risk to keep Sharp in the camp.

Neither the Japanese government nor Japanese banks have the capital to do this.

Foxccon is a Taiwanese company, not a Mainland company. Short of armed takeover, which would cost the PRC too dearly, Taiwan will never again be part of the mainland nation unless a revolution happens there first.

0 ( +0 / -0 )

Not surprising. This is the harbinger of Japan's future economic landscape. The miraculous post-war economy of Japan depended on employees being willing to work unpaid overtime for mega-businesses focused on exports. The "around 40s and around 30s" of Japan's workforce don't feel the same company loyalty, and companies themselves have shown themselves unworthy of that loyalty, by hiring temporary employees and an (unprecedented?) rate of firings since 2008. Mega-businesses like Sony have narrowed their appeal to domestic markets only, and are unable to compete with other Asian markets like Korea and Taiwan, much less international markets. Unlike China, Japanese companies have not been active in building relationships with African and South American nations where rare metals and raw materials for technology are available. Every company may not face the same consequences as Sharp, but protectionism is making Japan sick.

1 ( +1 / -0 )

Globalwatcher

Its not a shame at all,its business,not emotional decision,its a matter of profit not loss,nor pumping tax payer money into drains.Its not a matter of management-partly yes-but its a matter of market and competitiveness.Chinese and Korean ones are more competitors in the market,much less costs,less prices.Sharp is already out of market.The policy of selling products by its cost-as Sharp is doing to survive- is not business and wont continue.What wehave to understand and realize well,is that when Abe government gave green light to such a step,it means there are others waiting for such a deal.I would say new more competitive less costs progressive companies will be much better for Japan economy tax payers.People attack Abe-AS USUAL-for such a step,and will attack him as well if he didnt do!!!

0 ( +0 / -0 )

Technology transfer? Nah, they have been sharing for years.

0 ( +0 / -0 )

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