Japan’s electronics giant Sharp announced it has scrapped plans to produce displays for the US market in China and will instead build a new plant in Vietnam, due to uncertainties surrounding the ongoing US – China trade war, Nikkei Asian Review reported.
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Sharp made the announcement shortly after US-China trade talks in Shanghai this week appeared to yield little progress.
Later the same day, US President Donald Trump announced a new round of tariffs on Chinese imports beginning September 1. LCD imports will be on the goods affected.
Sharp did not disclose the investment amount to build the factory, set to begin operating in fiscal 2020 near Ho Chi Minh City.
Along with the US-bound car display screens, which will incorporate LCD panels made in Japan, the plant will make air purifiers and other electronics for sale in Vietnam.
China accounts for nearly all of Dynabook's PC output at present, chiefly at facilities in Hangzhou. About 10% of this is shipped to the US -- work that may shift to Vietnam.
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.
