Sharp 2010 Annual Report Download - page 13

Strong growth in demand for solar cells is anticipated worldwide,
aided by government environmental programs in various coun-
tries. Japan has enhanced subsidies to assist with installation
costs for residential households. The United States is expected to
implement full scale “Green New Deal” policies. China as well is
expected to establish policies that encourage more people to use
photovoltaic power generation systems.
To supply solar cells that meet various customers’ needs, Sharp
produces two types of cells. Crystalline solar cells are ideal for loca-
tions like houses where installation space is limited. Thin-film solar
cells are the best choice for large-scale
power generation systems in hot climates.
For crystalline solar cells, we are working on
lowering manufacturing costs while boosting
conversion efficiency. This involves innova-
tion of technologies and strategic silicon
procurement based on cooperation with
major silicon makers. Meanwhile, thin-film
solar cells, which have a small loss of conver-
sion efficiency even under high temperatures
and are suited to installation over large areas,
are expected to see an increase in demand
for use in flat-space installations, such as
mega solar power generation facilities. To
keep up with this rapid upturn in demand we
started operations in March 2010 at our solar
cell plant at GREEN FRONT SAKAI.
Sharp wants to become a total solutions company in the solar
cell market. Offering these solutions will require covering every step
of the value chain, including the production of materials, system
integration services and even Independent Power Producer (IPP)
businesses.*1 With this goal in mind, we are increasing activities in
this market and aiming for higher profitability. Our collaboration with
Enel Green Power and STMicroelectronics in Italy is one example.
We intend to use our technological skills gained over many years in
the solar cell business to establish a local production for local con-
sumption business model in other areas of the world, too.
Solar Cell Business
Sharp will work to meet strong demand with both crystalline and thin-film solar cells.
A
There are many opinions concerning the best way to increase
corporate value. From the standpoint of increasing shareholder
value, as I have explained earlier, I believe that we need to improve
our investment efficiency and our profitability. This is important
because it will give us a sounder financial position and support the
growth of our business operations. As a company, meanwhile,
Sharp places priority on acting as a responsible global citizen by
helping to protect the environment. Dramatic changes have
occurred in the global economy and the values of consumers in the
wake of the financial crisis. Sharp has many technologies that are at
What is Sharp doing to increase its corporate value?
As we pursue our two business visions, we are committed to achieving our corporate vision of becoming an
Eco-Positive Company. We believe this will contribute to growth in our corporate value.
Corporate Value
the center of the ongoing global transition to a low-carbon society.
As a result, I believe that today’s operating environment presents us
with enormous opportunities to begin a period of renewed growth.
Sharp will retain a commitment to the two business visions I out-
lined earlier. While pursuing these visions, we will create “green”
added value from technologies that save and create energy through
our business operations. By adhering to these principles, I am
convinced that fulfilling our corporate vision of becoming an Eco-
Positive Company will make a direct contribution to further growth
in our corporate value.
Q
A
Interview with the President
Modules
Cells
Wafers
Production
equipment
Raw material
Strategic
procurement
In-house
production
In-house production
IPP
Industrial
Residential
In-house
production &
Joint
development
In-house
production
Joint venture
Sales company
Consignment
production
Value Chain Targeted by Sharp
Value chain & Sharp’s strategy
Profit ratio
Electricity market
Becoming a total solutions company
System
integration
EPC*2
O&M*3
Consortium
Allocation of management resources
to match the smile curve
Expand investment in
upstream business field
Expand investment in
downstream business field
Peripheral devices
In-house
production
*1 A business that builds and operates its own power generation facilities, and sells the electric power it generates to
power companies.
*2 Engineering, Procurement, Construction
*3 Operation & Management
Annual Report 2010 11