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.