Rumor: Sharp wants to split off LCD division

The Japanese Sharp, which is in financial difficulties, plans to divest its division that produces LCD panels. Four different media report this. Sharp would like to hold a majority of the shares, but sell the rest.

Sharp would like to sell part of the LCD division, which makes LCD panels for smart phones and tablets, to get back into better financial waters. Bloomberg, Reuters, The Wall Street Journal and Japan’s Nikkei report this, all based on their own sources. Sharp would like to keep most of the split LCD division in its own hands, to sell the rest.

Sharp would also like to look at the Innovation Network Corporation of Japan, a fund of the Japanese government that should stimulate the electronics industry in that country. Earlier, the financially distressed Sharp said it would not sell its LCD division. Sharp expects to lose more than two hundred million euros this year.

Although Sharp’s LCD division is responsible for a quarter of sales, the division suffers from stiff competition from LG and Japan Display, among others.