Sharp Corp. is set to retain its struggling solar panel business, judging that it can become profitable with the help of Taiwan's Hon Hai Precision Industry Co., according to an in-house document.
In the document posted Monday on its website for employees, Sharp President Kozo Takahashi and Hon Hai Vice Chairman Tai Jeng-wu revealed they are considering various steps to rebuild the solar panel business and expressed confidence it will return to profitability.
Tai is expected to succeed Takahashi when Hon Hai, better known by the trade name Foxconn, completes its purchase of Sharp, making the company the first major Japanese electronics manufacturer to come under foreign ownership.
Sharp had been widely seen as leaning toward selling or downsizing the solar panel business, which suffered an operating loss in the year through March 31 due to slumping prices.
Following write-downs related to the solar panel business, the Osaka-based company is now aiming to revamp it by boosting sales of solar panels for homes.
With the investment by Hon Hai in Sharp scheduled to be completed by the end of June, Sharp will also increase investment in research and development, according to the in-house document.
Sharp, a century-old household name in Japan, has faced stiff price competition from foreign rivals and suffered huge losses in its liquid crystal display business.
The company has sold its head office building in Osaka Prefecture and cut jobs as part of restructuring.