Business / Corporate

Sharp to spin off semiconductor business

JIJI

Electronics maker Sharp Corp. has said it will spin off its semiconductor business, possibly in April 2019.

The move is aimed at establishing a structure that enables prompt management decisions and the active introduction of outside resources through tie-ups with other firms.

Sharp will set up two wholly owned subsidiaries that will absorb the semiconductor-related operations to be spun off, the company said Wednesday.

One of the two units will focus on semiconductors and sensors and the other on semiconductor lasers.

Sharp Chairman and President Tai Jeng-wu told reporters that the company’s management resources are limited in the field of semiconductors so he wants to tap overseas and domestic resources, showing eagerness to forge alliances with other firms including Sharp’s parent, Hon Hai Precision Industry Co. of Taiwan.

Currently, Sharp manufactures semiconductor-related products at its plants in the prefectures of Hiroshima and Nara.

As the company has been concentrating its resources on liquid crystal-related businesses since the 1990s, however, it has not made any large-scale investment in its semiconductor business in close to 20 years.