Report: Foxconn Planning To Acquire Sharp LCD Business
Foxconn Electronics is reportedly planning to acquire Sharp’s LCD business, and to make that move, the Taiwanese company may seek funding from Apple.
According to a report from DigiTimes, Sharp has been losing money for several years and may consider offloading its LCD business to turn operations profitable. Foxconn has since shown its interests in purchasing the facilities and as per various media reports, it’s looking to acquire Sharp’s 38 per cent stake in the joint venture.
Additionally, the multinational electronics contract manufacturing company could acquire other display production operations from Sharp. The acquisition could help Foxconn to expand its business.
In a bid to take over Sharp’s display business, Foxconn may call on Apple to contribute funding. Apple is already using Sharp’s displays for various devices, including its latest iPad Pro which uses Sharp’s IGZO display.
The report also states that Sharp is currently in talks with public-private Innovation Network of Japan, which is the main shareholder in rival Japan Display. If the two Japan-based display firms merge, it could not only reduce Apple’s display supply access but possibly increase costs.
So Foxconn and Apple at the moment are friends with benefits, as their move would help prevent the merger.
Sharp and Foxconn didn’t comment on the report. We’ll update you as the story develops. Stay tuned!