Summary: Sharp Corp.

S&P Global Ratings believes Sharp, as a major producer of liquid crystal display (LCD) panels and LCD TVs, maintains a level of competitiveness in these highly competitive industry segments by retaining and enhancing its technological capabilities and by making good use of the supply chain of its parent, Taiwan-based Hon Hai Precision Industry Co. Ltd. (A-/Stable/--). In its LCD panel business, Sharp has strategically shifted its product mix from small panels for smartphones to midsize panels that are more versatile and in which the company can use its technological advantages, such as high-definition displays and low power consumption. As a result, its product mix has improved and its factory operating ratios have become increasingly stable. However, Sharp's LCD business faces

...S&P Global Ratings believes Sharp, as a major producer of liquid crystal display (LCD) panels and LCD TVs, maintains a level of competitiveness in these highly competitive industry segments by retaining and enhancing its technological capabilities and by making good use of the supply chain of its parent, Taiwan-based Hon Hai Precision Industry Co. Ltd. (A-/Stable/--). In its LCD panel business, Sharp has strategically shifted its product mix from small panels for smartphones to midsize panels that are more versatile and in which the company can use its technological advantages, such as high-definition displays and low power consumption. As a result, its product mix has improved and its factory operating ratios have become increasingly stable. However, Sharp's LCD business faces a risk of potentially high volatility in earnings because of fluctuating short-term supply and demand; fierce competition with cash-rich Korean electronics makers and Chinese rivals with significantly increased capacity,...

Summary