Innovation still undecided on Sharp rescue plans as Foxconn raises bid, tries to allay job fears
In the bidding war for Sharp, Innovation Network Corp. has yet to decide on a possible rescue plan, even as rival Foxconn is raising its bid and promising not to cut Japanese jobs, a report said on Friday.
Innovation -- a fund backed by the Japanese government -- was expected to come up with a bailout plan on Friday, according to Reuters, but executive director Tetsuya Hamabe told reporters that "no formal decision" had been made after a meeting of the fund's upper echelons. Sources told Reuters that the group has been considering injecting over 300 billion yen ($1.7 billion) into Sharp, which would be paired with another 350 billion yen ($2.9 billion) in assistance from the company's two principal lenders.
Foxconn, meanwhile, has reportedly raised its bid from 625 billion yen (about $5.2 billion) to 659 billion ($5.4 billion). The claim that it won't cut jobs is presumably a means of appealing to leaders in Japanese government and industry worried about the damage a foreign takeover could cause.
As recently as Wednesday, Sharp was said to be leaning towards Innovation despite its nominally lower bid.
Whatever the outcome, the resulting entity will end up having Apple as a major client. Foxconn is Apple's main assembly partner, while Innovation would likely merge Sharp's display unit into Japan Display, an Apple supplier it formed out of parts of Sony, Toshiba, and Hitachi.
Innovation -- a fund backed by the Japanese government -- was expected to come up with a bailout plan on Friday, according to Reuters, but executive director Tetsuya Hamabe told reporters that "no formal decision" had been made after a meeting of the fund's upper echelons. Sources told Reuters that the group has been considering injecting over 300 billion yen ($1.7 billion) into Sharp, which would be paired with another 350 billion yen ($2.9 billion) in assistance from the company's two principal lenders.
Foxconn, meanwhile, has reportedly raised its bid from 625 billion yen (about $5.2 billion) to 659 billion ($5.4 billion). The claim that it won't cut jobs is presumably a means of appealing to leaders in Japanese government and industry worried about the damage a foreign takeover could cause.
As recently as Wednesday, Sharp was said to be leaning towards Innovation despite its nominally lower bid.
Whatever the outcome, the resulting entity will end up having Apple as a major client. Foxconn is Apple's main assembly partner, while Innovation would likely merge Sharp's display unit into Japan Display, an Apple supplier it formed out of parts of Sony, Toshiba, and Hitachi.
Comments
I'm sick of that word.
There's no way that JDI can meet that kind of demand especially in a technology they haven't deployed in any major fashion.
Only LG and Samsung can meet that kind of demand.
What does Innovation plan do with a display manufacturer that is technologically a dinosaur? The money would be better spent doing further R&D in beefing up JDI's OLED capabilities.
I will purchasing LG's stunning 3D 4k 65 inch OLED television in the near future. There is nothing made in Japan that even comes close to that television. Actually, there is nothing made anywhere in the world that comes close to that display.
JDI do produce OLED. And out of the three, only LG has an OLED that is cost effective for Apple. Samsung will get WOLED later this year, but even that wont be enough for Apple. So i dont see much of a chance for OLED on iPhone 7.
As a matter of fact JDI is currently the biggest supplier to Apple Display. And will likely be this way for the foreseeable future thanks to the weakening of Yen. JDI has its LCD display tech that brings lower power, better force touch decision, deeper black, as well as coloring in the pipeline. Which will likely to used in the 7 series of iPhone.