Sharp plans to build a new plant in Vietnam in order to avoid new tariffs being imposed in the escalating trade dispute between the US and China. (Photo: Kyodo) Tokyo (VNA) – Japanese electronics giant Sharp on August 1 announced its plan to build a new plant in Vietnam in order to avoid new tariffs being imposed in the escalating trade dispute between the US and China.
Sharp did not disclose the investment amount to develop the factory, which is set to begin operating in fiscal 2020 near Ho Chi Minh City, according Nikkei Asian Review.
The Vietnamese factory will assemble automotive liquid crystal displays to be sold in the US, as well as make air purifiers and other electronics for sale in Vietnam. Some personal computer production of its subsidiary Dynabook may shift to the new facility as well. China accounts for nearly all of Dynabook’s PC output at present, chiefly at facilities in Hangzhou.
Sharp Executive Vice President Katsuaki Nomura said construction of the new plant aims to sidestep the long-simmering trade war between Washington and Beijing.
Sharp also reported a consolidated net profit of 12.5 billion JPY (115 million USD) in the second quarter of 2019, down 35 percent on the year. Sales sank 4 percent to 515 billion JPY. It was the first simultaneous drop in sales and profit for that quarter since Sharp's August 2016 purchase by Taiwan's Hon Hai Precision Industry, better known as Foxconn.
Sharp, which supplies parts for Apple's iPhones, has suffered from the slowdown in sales for the US smartphone juggernaut, as well as from slumping TV sales in markets such as China. But the company's business with Apple appears headed for a recovery this quarter, and home appliance sales likewise look strong, leading Sharp to maintain its outlook for the year through March 2020.-VNA
VNA
