OSAKA -- Sharp President Tai Jeng-wu will remain at the helm until 2020, aiming to guide the electronics company to ambitious earnings goals despite challenges ahead.
Citing a "strong sense of duty," Tai told workers in a message on Friday that he would stay through the year ending March 2020 and work on grooming a successor to take over after the current medium-term plan ends.
When Taiwan's Hon Hai Precision Industry, or Foxconn, sent Tai to run newly acquired Sharp in August 2016, he made clear his intention to step down after the struggling Japan-based manufacturer returned to the first section of the Tokyo Stock Exchange. Sharp made its comeback to the big board last December, thanks to Tai's rigorous restructuring program.
The president said at the time that his desire to step down "has not changed" but left the matter "to the board of directors and a shareholders meeting to decide." In January, Tai transferred a portion of his authority as CEO to three executives, including Executive Vice President Katsuaki Nomura.
But senior executives still call Tai "irreplaceable." As deputy chief of the Foxconn group, Tai played a major role in securing favorable conditions for Sharp in procurement and sales partnerships, including with Foxconn.
Sharp is in the black again, reaching its net profit forecast in the year ended March 31. But revenue came to just 2.42 trillion yen ($22.2 billion), more than 80 billion yen short of its forecast, as sales to Apple slackened.
Tai describes Sharp's sales goal of 3.25 trillion yen for fiscal 2019 as a must-hit target. But business lines that the company hopes will propel growth, including ultrahigh-definition 8K televisions and technology for artificial intelligence, still lack earnings momentum.