Toshiba to sell TV business?
Toshiba (6502.JP), which has been facing enormous losses relating to its nuclear power business, has been in discussions concerning the sale of its semiconductor business. However, the Japanese press is citing potential negotiations between Toshiba and a number of TV brands to purchase the company’s TV business. While Toshiba had a 3.4% share of the TV market last year, slightly above Sharp’s (6753.JP) 3.2%, and far behind leaders Samsung Electronics’ (005930.KS) 21.0% and LG Electronics 12.6%, they sell over 600k units in Japan alone, but lose a substantial sum on the overall TV business.
Toshiba has withdrawn from the TV manufacturing business and licenses it’s brand to Vestel (VESTL.BIST), a Turkish based company that was the largest TV brand in Europe a few years ago, and remains a TV producer for a large number of brands across Europe, however the Japanese assets seem to hold the most interests for potential buyers. We believe Innolux (3481.TT) is the primary supplier to Toshiba, with Innolux being a division of Hon Hai (2317.TT)/Foxconn (2354.TT), who recently purchased the assets of Sharp, and is trying to revive the Sharp brand. Foxconn has been named as a potential buyer of Toshiba’s chip business, among others.
Toshiba has withdrawn from the TV manufacturing business and licenses it’s brand to Vestel (VESTL.BIST), a Turkish based company that was the largest TV brand in Europe a few years ago, and remains a TV producer for a large number of brands across Europe, however the Japanese assets seem to hold the most interests for potential buyers. We believe Innolux (3481.TT) is the primary supplier to Toshiba, with Innolux being a division of Hon Hai (2317.TT)/Foxconn (2354.TT), who recently purchased the assets of Sharp, and is trying to revive the Sharp brand. Foxconn has been named as a potential buyer of Toshiba’s chip business, among others.
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