Sharp CEO on US factory
While we have noted a number of comments from the Japanese press on the potential construction of a TV plant in the US by Sharp (6753.JP), it would seem that Tai Jeng-wu, the CEO, has made the definitive statement concerning the matter. He stated that the company has not made any decision as to whether such a plant will be built, and more to the point, if there is a policy from local governments to encourage, they will advance the plan.
Simply, the company, and in this case the final decision will likely be made by Sharp’s new parent, Foxconn (2354.TT), must receive enough incentives to make the project financially worthwhile. We believe this would entail significant long-term tax incentives at the least, and likely some additional infrastructure incentives relating to power, transportation access, and similar resources, not unlike the incentives given by regional Chinese governments to encourage companies to locate in such regions.
While the US trade organizations complain about the unfair competitive nature of Chinese companies due to government support, the same type of incentives will likely be offered to Sharp/Foxconn, but in this case they will be couched in political rhetoric. Deals are always made to ‘encourage’ growth, maybe we should stop whining and encourage US companies to innovate, retrain, and invent, something we seem to be better at than most others. After all, we did invent the telephone, light bulb, the airplane, washing machines, television, microwave ovens, industrial robots, lasers, integrated circuits, PCs, microprocessors, and social media (ok, maybe not a great last choice).
Simply, the company, and in this case the final decision will likely be made by Sharp’s new parent, Foxconn (2354.TT), must receive enough incentives to make the project financially worthwhile. We believe this would entail significant long-term tax incentives at the least, and likely some additional infrastructure incentives relating to power, transportation access, and similar resources, not unlike the incentives given by regional Chinese governments to encourage companies to locate in such regions.
While the US trade organizations complain about the unfair competitive nature of Chinese companies due to government support, the same type of incentives will likely be offered to Sharp/Foxconn, but in this case they will be couched in political rhetoric. Deals are always made to ‘encourage’ growth, maybe we should stop whining and encourage US companies to innovate, retrain, and invent, something we seem to be better at than most others. After all, we did invent the telephone, light bulb, the airplane, washing machines, television, microwave ovens, industrial robots, lasers, integrated circuits, PCs, microprocessors, and social media (ok, maybe not a great last choice).
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