Hon Hai Acquires Stake In Sharp

1005

[Techtaffy Newsdesk]

Sharp Corporation has entered into an agreement with EMS (electronic manufacturing service) company Hon Hai group (you may also know the company as Foxconn), for a global partnership to collaborate in various business fields, and to issue new shares to Hon Hai group through third-party allotment, which will make Hon Hai the largest shareholder in Sharp.

Hon Hai Precision Industry, the key company of the Hon Hai group, is procuring up to 50% of large-size LCD panels and LCD modules manufactured at the LCD panel plant in Sakai-city, Osaka, Japan. The LCD panel plant will be mutually managed by one company set by partner companies.

In addition, the partnership allows each company to establish a new business model, combining each company’s strength, to launch cost competitive component and products fit to market demand, says Sharp.

Sharp will allocate funds received from Hon Hai group by the issuance of new shares through third-party allotment, to the investment for the new technology introduction, to increase mid-and long- term profitability, and to strengthen competitive edge in the global market, says the company.

[Image Courtesy: Sharp]