“Panasonic Corp. has decided to withdraw from TV panel production amid fierce competition from foreign rivals, in particular in China and South Korea, company sources said Tuesday.
The Osaka-based company will end production at its sole liquid crystal display plant in the city of Himeji, Hyogo Prefecture, by the end of September, as it expects no improvement in its profitability.
Panasonic’s withdrawal will leave Sharp Corp. as the sole Japanese electronics maker making LCD panels for TVs in Japan.
Although Panasonic will halt TV panel production, it will continue making LCD TVs using panels procured from manufacturers in South Korea and elsewhere, the sources said.
Meanwhile, Panasonic will continue producing LCD panels for other purposes and bolster the LCD businesses for vehicles and medical devices, where growth is expected.” (Japan Times)
Another blow for Audio-Video & Electronics Manufacturing in Japan! Is this a business of the past? What do you think?
Read more from: Panasonic ends production of LCD (TV) panels in Japan!
SHARP LCD screens
SHARP losses over 4½ years top $10 billion !
“The maker of screens for Apple Inc.’s iPhones posted a loss of ¥83.6 billion in the six months ended September as the Chinese smartphone market slowed. Display sales dropped 15 percent.
Sharp has trudged from one crisis to another over the last four years after lower-cost Asian rivals undercut its core business making liquid-crystal display TVs. Banks accepted shares in the company earlier this year after it defaulted on debt payments, and it remains dependent on its main lenders Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. for survival.
“The problem with Sharp is it doesn’t have a core business with which it can look to the future,” said Mana Nakazora, the chief credit analyst in Tokyo at BNP Paribas SA. “All it can do is shrink its operations further.” (The Japan Times)
Read more from: About SHARP Corp’s losses
Is exiting or spinning off Audio-Video/Electronics/SemiCon/Display businesses, together with diversifying into other/new business domains, the only option left to Japanese Manufacturers? What do you think?
Japanese Electronics and Audio-Video Industries
Sony Corporation’s new multiyear business plan includes separating its audio and video segment into a wholly owned subsidiary later this year. The company does not rule out the potential sale of those struggling units as part of restructuring at the Tokyo-based electronics and entertainment group. Sony has already sold off its personal computer business under the restructuring.
Read more: http://www.japantimes.co.jp/news/2015/02/26/business/corporate-business/sony-chief-denies-spinoffs-mean-immediate-withdrawal/#.VPMVe-k3PIV