Century-old Giant SFL Wants To Sell Its Laser Business

SFL (Sharp Fukuyama Laser ) clearly indicated that the business will be transferred to the business is highly compatible, can bring further growth for the company's partners!
May 14, internationally renowned electrical and electronic manufacturers - Sharp publicly disclosed the 2023 fiscal year report (23 years from the beginning of April to the end of March 24 years).
Two years of consecutive losses! This 100-year-old giant wants to sell its laser business
During the report period, Sharp accumulated revenue of 2.32 trillion yen (about RMB107.24 billion), down 8.9% year-on-year; operating profit loss of 20.3 billion yen (about RMB9.38 billion), narrowing the year-on-year loss of 21.01%; final profit loss of 149.9 billion yen (about RMB6.92 billion), narrowing the year-on-year loss of 42.52%.
In order to quickly reverse the deficit situation, Sharp said that due to the panel market downturn for a long time, SDP Sakai plant performance, financial deterioration, comprehensive consideration of the cost and profitability of space, the company decided to stop the SDP Sakai plant production and operation in September 2024 before.
It is worth mentioning that in addition to the official closure of the SDP Sakai plant, another area in need of structural reform on the part of Sharp is electronic equipment. SSTC (Sharp Sensing Technology) and SFL (Sharp Fukuyama Laser), which operated the camera module business and semiconductor business, have made it clear that they will transfer their operations to a partner whose business is highly compatible and capable of generating further growth for both companies.
Sharp Fukuyama Laser Limited (SFL) is a wholly owned subsidiary of Sharp Corporation that was spun off in April 2019.
On July 1, 2021, SFL inherited the semiconductor manufacturing business of Sharp Fukuyama Semiconductor Corporation through a merger by absorption.
SFL has two core businesses: the Semiconductor Division and the Laser Division.
Semiconductor Division: With many of the world's leading chip design companies in the market as customers, the Semiconductor Division continues to develop new manufacturing processes based on advanced semiconductor manufacturing technologies cultivated over the past 50 years in order to meet the demand for higher performance, lower power consumption, and smaller size.
Laser Division: SFL handles visible red/green/blue lasers as well as ultraviolet/infrared lasers, and has a range of lasers with various wavelengths (colors).
In agriculture: To address the problems of an aging population, labor shortages, and environmental damage caused by pesticides, SFL is developing lasers that inhibit the growth of weeds without the use of herbicides, as well as lasers that destroy and repel pests that eat grains.
In electric vehicle motor and battery processing: As demand for electric vehicles increases, blue laser processing with high light absorption efficiency for copper used in motors and batteries is attracting attention, and SFL will work to increase its production.
On road mapping: SFL will look into laser road marking for such things as automobile reverse lights, information displays in stores, and guidance during disasters.
In addition, the Laser Division is engaged in the development of Micro LED displays. With technology that enables high resolution and high brightness, SFL aims to achieve miniaturization and high definition through full-color technology using quantum dots. The company is particularly developing it as a favorite light source for AR glasses.
It is understood that Sharp's goal at this stage is to realize an "asset-light structure" and "a business structure that focuses on the brand business". As mentioned earlier, the pillars of asset lightening are the suspension of large display production through SDP, cooperation with other companies in the small and medium-sized display business and factory optimization, and the transfer of business to partners in the camera module business and semiconductor business.
On the other hand, the "brand business-oriented business structure" aims to create a "virtuous cycle" through the existing brand business and new industries.
In addition, Sharp plans to accelerate its shift to growth areas, invest the cash it generates in cutting-edge technologies, and meet the challenge of capturing business opportunities in new and growing industrial fields.
Sharp aims to "lead new industries" and "accelerate the search for the next innovation from two perspectives: adding value by strengthening technological capabilities and expanding business fields."