Sharp Expands Global Strategy with Tempo Partnership and Major R&D Investment Boost

Originally posted on channelnews.com.au

Sharp Corporation is ramping up its global growth strategy with a renewed focus on research and development, innovation in AI technologies, and a strengthened partnership with Sydney-based distributor Tempo, according to company President and CEO Masahiro Okitsu, who we caught up with at IFA 2025 in Berlin.

Sharp President and CEO Masahiro Okitsu, with Tempo executive Nigel Dent right

Okitsu, who played a pivotal role in appointing Tempo to lead Sharp’s consumer business in Australia, said the company is entering a new phase of transformation. “We’re looking toward a new generation of AI-enabled technologies and liquid crystal display innovations” he said recently, as Chinese competitors accelerate their RGB LED offerings.

Strong Growth in Australia

Under Tempo’s management, Sharp’s consumer division has enjoyed significant growth in Australia. The brand is now the number two supplier of microwaves nationally, with the distributor expanding Sharp’s local presence through a broader appliance lineup and retail partnerships.

At IFA 2025, Tempo unveiled a new drawer-style microwave, showcased alongside Okitsu and senior Sharp executives — highlighting the growing collaboration between the two companies.

Tempo is also working with Sharp on the development of new appliances tailored to Australian consumers, including refrigeration and cleaning products, leveraging AI-driven innovation to create smarter, more efficient devices.

Renewed R&D Investment

Sharp’s research and development expenditure had declined in recent years, falling from $703 million in FY2018, but in 2024 the company reversed that trend as part of a new medium-term management plan designed to reignite innovation.

The company is now directing roughly 80% of its R&D funds toward home appliances such as washing machines and cleaning products, shifting away from its previous focus on LCD development.

By the end of fiscal 2027, investment in these brand businesses is projected to double compared to the three years through FY2023.

Partnership with Foxconn and Data Center Ambitions

Sharp is also deepening its collaboration with its Taiwan-based parent company Foxconn, exploring new opportunities in consumer products as well as AI, data centers, and server technology.

The Sharp brand is seen as being stronger than Foxconn’s in the consumer market.

At the company’s August earnings briefing, Okitsu revealed that Sharp could play an important role in Foxconn’s expansion into Japan’s data center market.

“When Foxconn, which produces AI servers, moves to expand operations in Japan, Sharp hopes to play a meaningful role,” he said. “We could even use Sharp’s unused factory space for server installation, maintenance, and sales operations.”

Okitsu emphasized that while Foxconn is a global powerhouse in electronics manufacturing — assembling products for many of the world’s leading technology brands — it lacks its own consumer brand presence. Sharp, by contrast, enjoys a strong brand identity in Japan and abroad, a synergy that could open new doors.

“If this collaboration succeeds, it could make it easier for Foxconn to partner with Japanese companies in other sectors,” he added.

Broader Strategic Vision

Beyond consumer electronics, Sharp is pursuing growth in artificial intelligence, electric vehicles, and robotics as part of its diversification strategy.

Its LCD operations continue to be structured around two main divisions:

Business-to-Consumer (B2C): covering home appliances and consumer displays.

Business-to-Business (B2B): including multifunction printers, PCs, and professional information displays.

Sharp’s acquisition of Toshiba’s PC business in 2020, now operating as Dynabook, has strengthened its foothold in the professional computing sector. Dynabook laptops and Sharp’s digital copiers remain popular among small and medium-sized enterprises, particularly in retail and office environments.

“We aim to develop products that address the diverse challenges faced by offices and factories by combining our hardware capabilities with customized digital solutions,” Okitsu said.

Looking Ahead

Sharp’s renewed commitment to innovation marks a turning point for the iconic Japanese brand. With Tempo driving strong results in Australia and Foxconn providing manufacturing scale and AI capabilities, Sharp is positioning itself as a model for successful Japanese–Taiwanese collaboration.

“We want to create a successful example of Japanese and Taiwanese companies working together to prosper in Japan’s market,” Okitsu concluded.