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Tuesday, December 28, 2010
Hitachi May Transfer LCD Unit to Hon Hai

Hitachi is reportedly negotiating with Hon Hai Precision Industry Co, the world's largest contract electronics maker, to transfer its controlling stake in a liquid crystal display maker, Japan's Nikkei newspaper said on Monday.

According to the paper, the Taiwanese manufacturer will likely invest around 100 billion yen in Hitachi Displays Ltd, which is now owned 75.1% by Hitachi with the remainder held by Canon Inc. Hitachi apparently wants to rid itself of unprofitable operations to focus on its infrastructure business while Hon Hai will likely use Hitachi?s know-how on LCD panels to lower production costs for displays used in smartphones, the paper added.

Hitachi Displays already contracts out part of its LCD production to Chimei Innolux Corp., a group firm of Hon Hai.

Hon Hai is currently making panels for Apple 's iPhones and iPads and has been expanding production, buying Sony's LCD television factories in Mexico and Slovakia. If Hitachi Display and Hon Hai team up, Chimei and Hitachi Displays will likely control a combined share of the global LCD market comparable to that of industry leader Sharp.

Foxconn was first a trade name of Hon Hai before becoming a subsidiary of the company in 2000.

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