In recent times, as Kobe Steel, a century-old Japanese company, openly admitted to fraudulent practices, the reputation of Japanese manufacturing has suffered a major blow. In contrast, the global influence of "Made in China" continues to grow steadily. This shift highlights not only the evolving dynamics in the global market but also the increasing strength and innovation of Chinese industry.
On October 16, the first batch of Boston Orange Line subway cars developed by CRRC Changchun Rail Bus Co., Ltd. was officially launched. These cars are expected to arrive in the United States by December, marking the first time that domestic rail transportation equipment from China will be introduced to the U.S. market. American consumers will soon experience the efficiency and speed associated with "China Speed."
Compared to the traditional export of "Made in China" products, the transformation of "Made in China" into overseas enterprises has become more evident over the past two years. One notable example is Foxconn, a leader in high-end Chinese manufacturing. It has successfully invested in Sharp, a once-renowned Japanese brand that had fallen from grace due to financial struggles.
Sharp, once known as the "father of liquid crystals," faced significant losses and eventually had to sell off its assets. However, since Hon Hai (Foxconn's parent company) signed a funding agreement with Sharp in March 2012, the company began to recover. Then, in August 2016, after Foxconn’s capital injection, Sharp’s fourth-quarter financial report showed a turnaround from loss to profit. The company is now working to regain its position among top-tier home appliance brands globally.
Data from the 618 E-commerce Day revealed that Sharp accounted for 36.9% of the overall market sales. Additionally, at the end of August, Sharp released the world’s first consumer-grade 8K TV simultaneously in Shanghai, Taiwan, Tokyo, and Berlin. This move showcases Sharp’s renewed focus on innovation and high-end technology.
From a rapid recovery to technological breakthroughs, the story of Sharp under Foxconn’s investment is a prime example of how "Made in China" is influencing and transforming well-known international brands. So, what exactly happened after Foxconn took control of Sharp? What lessons can this case offer to other Chinese manufacturers looking to expand further into the global market?
**Reshaping Sharp**
Sharp, a company with a century-long history, has always been known for its groundbreaking innovations. From radios to solar cells and LCD monitors, it has consistently launched products that were firsts in Japan and the world. However, in recent years, Sharp struggled financially, suffering massive losses that forced it to sell off parts of its business.
In August 2016, Foxconn’s parent company, Hon Hai, invested 388.8 billion yen (approximately $3.8 billion) to acquire 66% of Sharp’s equity, effectively taking control of the brand. This marked a turning point for Sharp, which had been struggling with issues such as slow corporate culture, poor market responsiveness, and oversupply in its main product lines like LCD panels and TVs.
Foxconn’s entry helped address some of these challenges by optimizing supply chain and production costs. The company implemented a series of reforms in personnel, operations, and supply chain management. Sharp focused on product planning, development, and sales, while procurement and manufacturing were handed over to Hon Hai, leveraging Foxconn’s extensive resources to boost production capacity.
Foxconn’s scale advantage in purchasing and manufacturing is immense. For instance, some of Sharp’s 2017 TV models were produced through OEM partnerships with Hon Hai. Before that, Sharp had already established a manufacturing plant in Shanghai. At the end of last year, Foxconn invested 6.1 billion yuan to build a factory in Guangzhou, creating an 8K ecosystem for the 10.5 generation line. This expansion allows Foxconn’s global production network to support Sharp, significantly reducing its manufacturing costs.
By lowering costs and offering competitive pricing, Sharp has managed to increase its market share through effective marketing strategies. Foxconn’s deep understanding of the Chinese market has also helped Sharp re-enter and grow in this key region. Through campaigns during e-commerce festivals like Double 11 and 618, as well as modern marketing approaches, Sharp has made a strong return to public awareness.
**From the Father of LCD to the Father of 8K**
As the world’s largest contract manufacturer, Foxconn works with major brands like Apple and Samsung. It possesses strong industrial production capabilities, leading supply chain coordination, and advanced management efficiency. Sharp, on the other hand, has long-standing technical expertise in areas such as liquid crystal displays and has built a strong brand image in the minds of consumers.
The collaboration between Foxconn and Sharp is based on mutual complementarity. Rather than just investing in R&D, Foxconn focuses on accelerating the commercialization of new technologies and boosting market operations. This strategy helps Sharp continue expanding its market share and improving product quality.
With Foxconn’s support, Sharp has moved beyond relying solely on LCD TVs and is now building an ecosystem that connects smart homes, offices, factories, and cities using 8K technology, IoT, and cloud services. This multi-dimensional growth strategy is paying off.
Facts confirm this plan. After solving Sharp’s survival issues and helping it re-enter the top-tier TV market, Foxconn invested heavily in technological innovation, launching the world’s first 8K TV. Chen Guoguo, vice president of Foxconn Technology Group, emphasized that Sharp has not only developed a TV but also built a complete 8K industrial chain—from source filming to content editing, storage, transmission, and terminal playback.
To further solidify its commitment to building an 8K industry platform, Sharp announced the official start of the Foxconn Luhu Global Future Display Technology and Innovative Application R&D Center, which was listed as a major project in Shenzhen in 2017.
Sharp, now entering the Foxconn era, is redefining itself. From regaining its status as the “father of LCD†to becoming the “father of 8K,†it has once again captured the attention of competitors. For example, while most TV companies expected a tough year in 2017, Sharp exceeded expectations.
**The Transformation of "Made in China" Going Global**
The partnership between Foxconn and Sharp represents a broader trend in the evolution of "Made in China." It is no longer just about exporting products or acquiring foreign brands. Instead, it reflects a deeper transformation where Chinese manufacturers are empowering global brands, integrating industrial chains, and reshaping the global manufacturing landscape.
Experts suggest that the next phase of "Made in China" is about gaining brand equity in the upstream of the supply chain. Foxconn Chairman Guo Taiming believes that for China to truly transform, it must move from being behind the scenes to taking center stage. Acquiring brand equity through acquisitions or strategic investments is a crucial step in upgrading the industrial structure.
From imitation to innovation, from OEM to brand equity, the position of Chinese manufacturing in the global supply chain is shifting. The success of Foxconn’s empowerment of Sharp is a testament to the growing global influence of "Made in China." It is moving from being a low-cost producer to a leader in high-end manufacturing, from passive participation to active leadership, and ultimately, from a big manufacturing country to a strong one. This transformation is reshaping the global industrial landscape with the power of "Made in China."
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