Foxconn produces and assembles products for many top consumer electronics brands today. Sharp and Foxconn now intends to enter a display partnership that will give Foxconn access to half of the LCD panels from Sharpâ€™s 10G LCD plant in Sakai.
Foxconn & Sharp partnership
Foxconn and Sharp have officially announced a new display partnership. Foxconn will invest around 800 million USD in Sharp and will take a 10 percent share of the company.
Sharps 10G LCD plant in Sakai, Japan
More interestingly, Foxconn will also take up to 50 percent of the LCD capacity at Sharpâ€™s Sakai LCD plant that is currently used for producing large-size LCD-TVs. It will not affect Sharpâ€™s LCD-TV plans because the plant have not been running at full capacity but Foxconn will gain access to the most advanced LCD plant today that can handle small and medium-size LCD panels as well as extremely large-size LCD panels up to more than 100 inches.
The business structure will be a joint venture, with Sharp and Foxconn taking up 46.5 % ownership each, and Sony taking up the remaining 7 %. Sony also reports that it has no plans to invest more money in their partnership with Sharp, and that they actually have the right to sell its 7 % share in the event of a new company entering (which Foxconn has just done).
Why Foxconn and Sharp have entered the new display partnership remains unclear but it is unusual for a Japanese company to strengthen its ties with a Taiwanese as it is the case here. Foxconn manufactures products such as iPad, iPhone, Kindle, PlayStation 3, Wii and Xbox 360. In 2011 it was also reported that Sharp is a key display partner for the coming Apple HDTV that is believed to be manufactured at Foxconnâ€™s plants.