Japan's Sharp seen spinning off LCD unit

Tokyo

LOSS-MAKING Japanese electronics maker Sharp Corp may spin off its LCD panel business and seek funding for it from the government-backed Innovation Network Corporation of Japan (INCJ), a source familiar with the plan said on Sunday.

The Nikkei Business Daily earlier reported that the LCD unit, which supplies displays to smartphone and tablet manufacturers, will be spun off in the current fiscal year and that INCJ could invest 100 billion yen (S$1.1 billion) in the new entity. The source said that Sharp, as part of its restructuring plan, wants to keep a majority in the LCD unit, and that details of an INCJ stake have not been decided. A Sharp spokesman, while confirming the company was considering various reforms for its LCD business, said that no decision had been made.