Foxconn deal to become major shareholder in Sharp falls apart

Foxconn was to invest US$806 million in Sharp in the deal announced last year, but the deal was repeatedly postponed

A deal that would have made electronics giant Foxconn a major shareholder in Japan display maker Sharp has fallen apart, though the companies remain close partners in the complex global electronics supply chain.

Foxconn's Hon Hai Precision Industry announced in March 2012 it would invest about US$806 million in Sharp for newly issued shares. But negotiations dragged on as Sharp's stock price plunged in the following months, and the two failed to come to an agreement on the investment by their agreed to deadline of Tuesday.

As Sharp had not received payment from Foxconn by the deadline, the new share allotment will not be issued, Sharp said in a news release Tuesday.

However, "The two companies are still discussing about details" of other possible deals, said Sharp spokeswoman Miyuki Nakayama. She said Sharp is also looking at other means of obtaining investment, which includes the possibly of finding other investors.

The deal was seen as beneficial for both companies, with Foxconn gaining greater access to Sharp's LCD manufacturing capacity and advanced technologies, while Sharp received a much-needed cash infusion to boost its sagging finances. Both count Apple among their major clients and reports have said they are involved in the U.S. firm's long-rumored "iTV" product.

A Foxconn investment firm completed a separate investment last year of roughly US$700 million to take half control of one of Sharp's major factories that produces LCD displays for large screen TVs.

The two companies are now in vastly different circumstances. Earlier Tuesday, Foxconn posted a record annual profit, while Sharp is going through a major restructuring as it limps to the end of its fiscal year, for which it forecasts a deep loss.

Still, Sharp remains one of the world's largest manufactures of LCD screens, with advanced technologies that appeal to other firms. Its also remains a major seller of TVs under its own brand.

"Sharp's TV business, though on the decline, still commands significant volumes, which are mostly built by Sharp in-house," said Jeffrey Wu, an analyst with research firm IHS iSuppli.

Earlier this month, Sharp postponed a US$60 investment from Qualcomm as the two firms were unable to make sufficient progress on joint display research. An earlier US$60 million investment from Qualcomm was completed in December.

Sharp also secured a US$100 million investment from Samsung, agreeing to become a major supplier of screens for the South Korean's company.

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesfoxconnHon Hai Precision IndustrysharpComponentsinvestmentsdisplays

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?