In a surprising turn of events, another major Japanese home appliance company has fallen. Following the sales of Sanyo and Sharp, on November 14, 2017, Toshiba Corporation was forced to sell its century-old television business to avoid being pushed out of the market. China's Hisense Group acquired the TV business along with a 40-year global brand license for just 12.9 billion yen.
In the 1980s, Japan was known as the "TV Kingdom," with companies like Toshiba, Sanyo, Hitachi, and Sharp leading the way. Toshiba, which had a history of 142 years, was one of the most respected names in the industry. It was the first to commercialize color TVs and later introduced the world’s first 3D TV that didn’t require glasses. The Toshiba brand was well-known in China, with an ambitious goal of selling 18 million LCD TVs annually.
However, the company now faces deep financial crises, with losses piling up year after year. In a desperate move to avoid delisting, it sold its last traditional home appliance business. While it remains unclear whether this deal will save Toshiba, it marks a significant step for Hisense, enabling it to accelerate its global expansion through brand collaboration, technology sharing, and production partnerships.
This merger highlights a broader trend in global industrial migration. On one hand, low-profit manufacturing is moving from China to Southeast Asia and Africa, where costs are lower. On the other hand, Chinese companies are rising through acquisitions, entering higher-level markets and building their own global brands.
Toshiba's TV business began over a century ago. In 1927, it developed the world's first camera tube capable of displaying TV images. In 1960, it became the first Japanese manufacturer to commercialize color television. In 2010, it launched the world’s first naked-eye 3D TV. For decades, television was the backbone of Toshiba's success, shaping its legacy and global recognition.
But everything changed after the 2011 Fukushima nuclear disaster. Toshiba had heavily invested in nuclear power, acquiring Westinghouse in 2006. However, the nuclear crisis led to a massive downturn, causing huge losses and forcing the company to sell off assets. By 2015, it reported a $4.4 billion loss—the largest in its history.
To survive, Toshiba had to sell key businesses, including its semiconductor division for $18 billion. But even this wasn't enough. The company faced pressure to meet Tokyo Stock Exchange deadlines to avoid delisting. In a final effort, it sold its TV business to Hisense.
The deal was announced on November 14, 2017. Hisense paid 12.9 billion yen for 95% of Toshiba Visual Solutions, gaining access to the brand, products, and 40 years of global licensing rights. This transaction came just in time to avoid delisting, marking a pivotal moment for both companies.
For Toshiba, it was a painful but necessary step to refocus on core areas like semiconductors and ICT solutions. For Hisense, it was a strategic move to expand globally, leveraging Toshiba’s technology and brand equity. The partnership is expected to enhance Hisense’s competitiveness and accelerate its international growth.
Industry experts note that this shift reflects a broader trend: while Japanese companies retreat from consumer electronics, they are focusing on high-value components and B2B sectors. Meanwhile, Chinese firms like Hisense are climbing the value chain, acquiring foreign brands and technologies to build their global presence.
As the global home appliance industry continues to evolve, the story of Toshiba and Hisense serves as a powerful example of how mergers and acquisitions can reshape markets and redefine competitive landscapes.
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