FILE PHOTO: the logo of Sharp Corp is pictured at CEATEC (combined Exhibition of Advanced Technologies) in JAPAN in 2016, in the Makuhari Messe, in Chiba, Japan, October 3, 2016. (REUTERS photo/Toru Hanai/File Photo
TOKYO (Reuters) – Shares in Apple supplier Sharp Corp tumbled 14% on Friday, given concerns over escalating China-US trade war, even though the Japanese company, said a day earlier that it will build a factory in Vietnam, and to ease any potential impact on the business.
Sharp, which makes sensors, camera modules and display screens for Apple Inc’s iPhones, said late on Thursday that the new plant in Vietnam will be as flat screens, electronic equipment, and air purifiers from the fiscal year beginning in April of next year.
The plant will be able to shift part of its production to China, as requested by the customer, a Sharp executive said on Thursday, following the announcement of a plan to set up a unit in Vietnam, with $25 million in capital for the management of the firm.
Close stocks logged their biggest daily percentage decline since June of 2016, and on Friday, the next US President, Donald Trump’s threat to impose further tariffs on Chinese imports for the next month.
The additional shares in the united states. the rates may cause more pain and a Sharp, who was also hit by a bigger-than-expected 41 percent drop in quarterly profit, as a tit-for-tat import tariffs that have dampened the sales of smartphone components.
Sharp joins a growing number of global companies have set up production in China and the move to low-wage countries, and to diversify production sites to be in the middle of a growing trade dispute.
Her parents, Foxconn is exploring the sale of its new $8.8 billion the display panel, with a factory in China, and people familiar with the matter told Reuters.
Sony Corp. has announced a plan to make Beijing a smartphone plant, while Samsung Electronics Co., is the cessation of operations at one of its mobile phone factories in China.
Nintendo also plans to shift part of its production of the Switch in a gaming console to get to Vietnam from China.
Reporting Makiko Yamazaki; Editing by Miyoung Kim and Himani sarkar