After two years forgoing investment, Sharp Corporation is committed to ramping up its outlays in Thailand from this year.
Part of the plan sees the company moving back its production line for TV products from Malaysia this year.
Sharp moved its production line of TV products to the neighbouring country a decade ago. Starting this September, the company has spent US$3 million to install a new TV production line at Sharp Manufacturing Thailand in Nakhon Pathom province.
The first stage calls for total production capacity of 500,000 units a year, mainly serving the domestic market.
Sharp aims to invest more in its TV production line to raise capacity to more than 1 million units in the future. Additional parts will be slated for export to Cambodia, Myanmar, Vietnam, Laos and India.
"The financial performance of Sharp in Japan has significantly improved after Hon Hai Group of Taiwan invested, acquiring a 66.6% share last year," said Robert Wu, managing director of Sharp Thai, the local distributor.
"Moreover, consumer sentiment in Thailand is quite energetic thanks to the Thailand 4.0 policy announced by the Thai government, which comes in tandem with Sharp's vision and future technology development covering automation, artificial intelligence (AI), Internet of Things (IoT), smart healthcare and smart farming."
Thailand is now Sharp's top market in Southeast Asia. Located in the centre of the region, Thailand still has a lot of growth potential in the future, Mr Wu said.
Tai Jeng-Wu, president and chief executive of Sharp Corporation, said TV products contribute about 50% of the company's total sales.
Apart from LED TVs, the company also plans to import 8K TVs to market in Thailand next year, he said, adding that the company is also considering more investment in the logistics business in Thailand to make the supply chain more comprehensive.
The logistics investment may come in the provinces close to the Eastern Economic Corridor, Mr Jeng-Wu said.
Sharp has been in Thailand for about 90 years. It has invested in Thailand for the sale, manufacture and after-sale service of consumer electronics, with additional activity in business solutions and solar energy products.
The company has two manufacturing plants in Thailand. The factory in Chachoengsao province makes home appliance products to serve domestic and export markets, while the factory in Nakhon Pathom province makes copy machine products and LED TVs.
Sharp expects sales growth of 20-30% to about 6 billion baht in fiscal 2017, which began last April 30.
Mr Wu said the market size for TVs in Thailand is about 2.2 million sets a year. Sharp ranks third in the market, controlling a roughly 10% market share. The company expects to sell about 300,000 Sharp TV products this year.
"Competition in Thailand's TV market is very fierce," he said. "We will come back and stand in the forefront of Thailand's electrical appliances, but with a different product approach."
Next year, the company aims to focus on promoting Aquos and Plasmacluster, two key technologies of the company.
The company is planning to spend more on marketing in the coming year as it tries to reach consumers aged 25-40 who are interested in fashion and new trends of innovative products that suit their lifestyle, but at a reasonable price.