Sharp 2012 Annual Report Download - page 10

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8 SHARP CORPORATION
Joint Management of SDP
Sharp Hon Hai Group
Toppan Printing
Group
Dai Nippon
Printing Group
SDP
Strengthen cost-competitiveness and realize stable
operations
Aims
SDPの同運
シ ャ ープ グ ル ープ
グ ル ープ
グ ル ープ
SDP
競争力強化安定操業の実現
ねらい
デジタル家野における協
ランド 生産技術力
商品企画力 調達
開発力
商品 /デバイススト競 争
鴻海グループの生産技術力調達力活用
力のあプ製品世界市場に積極投入
プ株式会社本体への出資
鴻海
グループ
シャー
ねらい
Collaboration in Digital Home Appliances Field
Brand Production
technologies
Product
planning Procurement
Development
(products/devices)
Cost-
competitiveness
(1) Utilize the Hon Hai Group’s production technologies
and procurement capabilities
(2) Introduce Sharp products with cost-competitiveness
in world markets
Equity investment in Sharp Corporation
Hon Hai
Group
Sharp
Aims
Interview with the President
Break away from a self-sufficient mindset
Our first initiative is to break out of our self-sufficient
mindset of the past. On March 27, 2012, Sharp an-
nounced its capital and business alliance with the Hon
Hai Group, the world’s leading electronic manufacturing
service company. I will describe the details and objec-
tives of the alliance.
(1) Joint management of SDP
The agreement with the Hon Hai Group entails joint
management of Sharp Display Products Corporation
(SDP), which is a production company for large-size
LCD panels in Sakai, Osaka. The aims of the collabora-
tion are to enhance cost-competitiveness and achieve
stable operations at the Sakai Plant.
Part of the shares of SDP will be transferred to the
Hon Hai Group, enabling the latter to best fulfill its re-
sponsibilities for joint management of SDP.
Meanwhile, the LCD color filter businesses at the
Sakai Plant operated by the Toppan Printing Group and
the Dai Nippon Printing Group will be transferred to
SDP in the manner of an absorption-type company split.
Through the unified operation of the LCD color filter
and LCD panel businesses, we plan to further enhance
efficiency and cost-competitiveness.
What are the four core initiatives?
We will work on the following specific initiatives: 1) break away from a self-sufficient
mindset in the digital home appliances field through our alliance with the Hon Hai
Group; 2) grow into a truly global company; 3) transform our business model to place
more importance on services; and 4) generate new demand.
Q
A
(2) Collaboration in the digital home appliances field
In the digital home appliances field, which includes
LCD TVs and mobile phones, the consumer purchas-
ing benchmarks in the world market are shifting from
“quality, brand and technology” to “price.” According-
ly, the sheer scale of production capacity has become
the main determinant for competitiveness.
In this field, therefore, it is no longer sufficient for
Sharp to solely undertake all processes, from R&D
to design, production, sales and after-sales services.
Instead, we need a new framework, in which we col-
laborate with a strong business partner.
To best deploy Sharp’s brand, product planning and
development capabilities on the world stage, we will
utilize the strengths of the Hon Hai Group in production
technologies, procurement capabilities and cost-com-
petitiveness. In this way, we plan to actively promote
Sharp-brand products with cost advantages to markets
around the world.
To further strengthen the alliance, the Hon Hai Group
will make an equity investment in Sharp Corporation.