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Tuesday, March 27, 2012
 Hon Hai To Take 11 Percent Stake in Sharp
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Message Text: Taiwan's Hon Hai Precision Industry Co will take an 11 percent stake in Japan's Sharp, the Japanese company said on Tuesday.

Hon Hai Precision Industry, a major supplier of components for Apple's products, will enter a tie-up in LCD production that includes Sharp issuing 66.5 billion yen ($803 million) worth of its shares to four Hon Hai group companies.

Hon Hai will hold a 46.5 percent stake in Japan's main Sakai plant (Sharp Display Products Corporation, SDP), in western Japan. Sharp will hold 46.5 percent and the remaining 7% will still be held by Sony.

"The market surrounding electronics industry is becoming severe, with rapid price decline due to the development of digital technology and increasing competition in a global market. We believe the timely action is necessary to tackle these changes in the market, Sharp said in a statement.

The LCD panel plant will be mutually managed by one company set by partner companies.

In addition, this 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 by utilizing Sharp's potential for the development components and products with Hon Hai group's mounting technology and cost competitiveness.

Sharp plans to enhance this partnership by broadening the collaboration field, to 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.

Document Business

In related news, on March 26, 2012, Sharp held a press conference to talk about its document solutions business in China.

Nobuyuki Sugano, Senior Executive Managing Officer and Group General Manager, China Group, outlined Sharp's document business plans for China and talked about the April 2012 start of production on new manufacturing lines at Sharp Office Equipments (Changshu) Co., Ltd. (SOCC).

Demand is growing for color-capable MFPs in Europe, North America, and China as well, and the new lines at SOCC?s second plant will be dedicated to these machines. SOCC will thus play the role of key supply base, not just for China but for other world markets, too.

Sharp also plans to create an autonomous system for China encompassing everything from product planning to after-sales service, products made especially for the Chinese market, and a sales and service network covering the entire country.

In addition, Sharp explained its plans to boost solutions business with its interactive whiteboards etc. for markets towards Shanghai, Beijing, and other major metropolitan areas by maximizing existing MFP sales channels in China.
 
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