Select Language:
Chinese electronics giant plans to acquire the television division of a major Japanese company, aimed at boosting its global footprint in Europe and North America. The takeover is scheduled to begin in April, as part of the Japanese company’s restructuring efforts, according to industry sources. The transition will not involve any layoffs or plant closures.
In recent years, the Japanese company’s financial situation has been challenging. Last year, it initiated a strategic overhaul, including the discontinuation of less profitable divisions like TV manufacturing, with a plan to cut around 10,000 jobs worldwide—about 4% of its workforce. Earlier this month, the company announced intentions to increase this to 12,000 layoffs.
The Japanese firm did not rank among the top ten TV manufacturers globally last year, while the Chinese company ranked sixth with 8.2 million units shipped, commanding a 3.7% market share, according to industry data. The Japanese company’s annual TV shipments are roughly two million units, with European and North American sales making up less than half, according to a market analyst. After acquiring the TV business, the Chinese company’s annual shipments are expected to rise to approximately nine million, pushing its global market share to 4%.
The Chinese company has been pursuing cost-effective growth in the global TV market, including securing rights to operate the Philips TV brand in North America last year. Market analysts indicate that sluggish growth and intensified competition have led many electronics firms to shed their TV divisions, resulting in numerous mergers and acquisitions. Chinese manufacturers, leveraging their strong resource integration skills, have rapidly increased their market shares.
Besides this Chinese company, other Chinese TV brands have also acquired Japanese competitors. A major Chinese manufacturer announced a partnership with Sony to acquire a majority stake in a joint venture managing Sony’s home entertainment business. Another top Chinese manufacturer bought Toshiba’s TV division back in 2017.
ChatGPT
Perplexity
Gemini AI
Grok AI
