Rumor: Foxconn wants to take over LCD division Sharp




The Taiwanese hardware manufacturer Foxconn wants the LCD branch of Japan’s Sharp to take over, report several anonymous sources. A partnership or merger with the public-private Innovation Network Corp. Japan is also possible, partly to keep Sharps knowledge within the country.

It writes the Japanese magazine Nikkei following unnamed sources Sunday on its website. Taiwan’s Hon Hai, which is better known under the brand name Foxconn, since the summer talking to the Japanese electronics giant. The proposal would mean that Foxconn receives a majority stake in a display manufacturer which was formerly a division of Sharp. With the acquisition Foxconn would also minority stake of 38 percent that Sharp has at LCD maker Sakai Display Products, want to take over.

Apple also has a stake in Sharp’s display unit for mobile devices of about 50 billion yen, approximately 370 million euros. The company from Cupertino might have a preference for a possible takeover by Foxconn, writes Nikkei. The other option is in fact a merger with Japan Display, where the Innovation Network Corporation of Japan is the main shareholder. This alternative would ensure less possible suppliers of screens for Apple, which reduces various companies to play off against each other. In Japan, a merger or cooperation with Japan Display can be preferable because in this way technology from Sharp does not fall into foreign hands.

By ever falling prices in China makes Sharp the LCD division’s bad for some time. At this time, the value is about 300 billion yen, approximately 2.2 billion euros. If no agreement is reached quickly, can that value by the low prices in China fall quickly, said one of the anonymous sources. The vicissitudes of the display division of Sharp running for some time. In April this year the company already seemed to flirt with the Innovation Network Corporation of Japan.

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