Sharp in talks with Hon Hai (Foxconn) on tie-up

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By Larry Banks

Japanese electronics giant Sharp has apparently started negotiations with Taiwan’s Hon Hai Precision Industry Co, better known as Foxconn, over the company’s struggling display business, according to local newspaper Asahi.

Sharp and Hon Hai tie-up

Investors and analysts have previously urged Sharp to overhaul its LCD and consumer electronics divisions. Chief Executive Kozo Takahashi appeared to resist but last month said he was open to a major restructure including some kind of strategic deal for its LCD display business.

Sharp may in fact consider accepting capital from the largest contract electronics company in the world, Hon Hai, in the display business after the business was spun off from Sharp; alternatively, selling Sharp’s stake in their joint TV panel plant in sakai, Japan, said the report citing unnamed sources.

But Sharp was said to be considering a Japanese government-backed support fund and the situation was currently fluid, the newspaper added.

Reuters reported that when asked about the report, a Sharp spokesperson said “We are considering various things regarding the reform of the display business, but we decline to comment on an individual firm”.

SOURCE: Reuters.

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