Foxconn & Sharp may spend $1B on LCD plant to boost production for Apple

Posted:
in General Discussion edited January 2014
Foxconn and Sharp are considering a $1 billion investment in a Japanese LCD plant in order to build more display panels for Apple's iPhone and other devices.

C.C.Lin, an official with Foxconn parent Hon Hai Precision Industry, revealed his company's interest in the deal to boost production at Sharp's Sakai, Japan, plant this week, according to Reuters. Lin also revealed that Hon Hai is considering buying Sharp's TV assembly plants in China and Mexico, news that will likely on further fuel speculation about a possible Apple television set.

The comments made by Lin are a strong sign that Sharp's recent financial struggles have not scared away Foxconn from investing in the Japanese company. One report last week from The Wall Street Journal characterized talks between the two companies as in doubt after Sharp's stock price plummeted by 70 percent in a five-month span.

But Thursday's report claimed that Foxconn and Sharp may announce details of the investment as early as Friday. The two sides are reportedly still discussing a deal that would give Foxconn at least a 9.9 percent stake in Sharp.

Lin said the deal hinges upon how willing executives at Sharp will be to take advice from Hon Hai officials on how to increase profits. He said Foxconn will be able to lower the cost of components for Sharp if the two reach a deal.

Tim Cook at Foxconn
Apple CEO Tim Cook visits a Foxconn iPhone plant in March.


Sharp already supplies LCD displays for Apple's devices, including the iPhone and iPad. But both companies hope that they will be able to gain a larger role in Apple's supply chain by joining together.

It was first announced in March that Foxconn planned to buy a 10 percent, $808 million stake in Sharp's money losing LCD business. The terms of that deal are likely to have changed as Sharp's stock price has dropped dramatically since.

Sharp's president announced earlier this month that his company is shipping screens for Apple's next iPhone, expected to be unveiled at a media event on Sept. 12. The next iPhone is expected to feature in-cell touch panel technology that will allow the touchscreen to become even thinner, allowing for a thinner overall design or more space for components like the battery.

Comments

  • Reply 1 of 15


    It would be nice if Apple would try to get that investment to happen upon American soil.

  • Reply 2 of 15
    quadra 610quadra 610 Posts: 6,757member

    Quote:

    Originally Posted by davidness View Post


    It would be nice if Apple would try to get that investment to happen upon American soil.



     


    What's the incentive?

  • Reply 3 of 15

    Quote:

    Originally Posted by davidness View Post


    It would be nice if Apple would try to get that investment to happen upon American soil.



     


    Or better in some other place outside American. Sharing of blessing.

  • Reply 4 of 15
    What? No word on how this might affect Samsung in the long run (and on how it may have been motivated by all these legal shenanigans in the first place)?
  • Reply 5 of 15

    Quote:

    Originally Posted by Mainyehc View Post



    What? No word on how this might affect Samsung in the long run (and on how it may have been motivated by all these legal shenanigans in the first place)?


    Setting up these facilities take time, so much time that perhaps Samsung can sprint away far ahead when Sharp factory can match its production numbers today.


     


    That was how they won the RAM war; Samsung made twice of what you produced when your factory has just started. When Elpida made 128MB, Samsung ship 256MB to shops in the same month. It went like that again and again.

  • Reply 6 of 15
    Earmark the $1B jury award they will get from Sammie to pay for it.
  • Reply 7 of 15

    Quote:

    Originally Posted by Fairthrope View Post


    Setting up these facilities take time, so much time that perhaps Samsung can sprint away far ahead when Sharp factory can match its production numbers today.


     


    That was how they won the RAM war; Samsung made twice of what you produced when your factory has just started. When Elpida made 128MB, Samsung ship 256MB to shops in the same month. It went like that again and again.



     


     


    Indeed : in this business , $1B is almost nothing ...

  • Reply 8 of 15
    mcrsmcrs Posts: 172member


    Aha...!, now we know where the could-have-been-TSMC's USD 1 Billion is being passed on to...

  • Reply 9 of 15
    gazoobeegazoobee Posts: 3,754member

    Quote:

    Originally Posted by davidness View Post


    It would be nice if Apple would try to get that investment to happen upon American soil.



     


    Because of course "American soil" is holy or something, right?  :rolleyes:  

  • Reply 10 of 15
    umrk_lab wrote: »

    Indeed : in this business , $1B is almost nothing ...

    Oh, okay… We're always learning, right? ;)
  • Reply 11 of 15
    realisticrealistic Posts: 1,154member

    Quote:

    Originally Posted by davidness View Post


    It would be nice if Apple would try to get that investment to happen upon American soil.





    Kind of hard to do that since the factory already exists in Japan.

  • Reply 12 of 15
    realisticrealistic Posts: 1,154member

    Quote:

    Originally Posted by Robin Huber View Post



    Earmark the $1B jury award they will get from Sammie to pay for it.




    Foxconn and Sharp are not getting a dime of that award money.

  • Reply 13 of 15
    mcrsmcrs Posts: 172member


    That will be the first. A Japanese industrial tech giant with years of technological expertise under its belt will be [listening to / dictated by] the low-cost-but-highly-disrespectful-of-own-labor-force Chinese counterpart. Is this the long-awaited Chinese revenge against the perpetrator of one of the dark pages in Asian history aka the Japanese's Rape of Nanking?


     


    Quote:


    Lin said the deal hinges upon how willing executives at Sharp will be to take advice from Hon Hai officials on how to increase profits.


  • Reply 14 of 15
    lkrupplkrupp Posts: 10,557member

    Quote:

    Originally Posted by davidness View Post


    It would be nice if Apple would try to get that investment to happen upon American soil.



     


    For what reason other than to satisfy some political ideology currently in vogue?

  • Reply 15 of 15

    Quote:

    Originally Posted by lkrupp View Post


     


    For what reason other than to satisfy some political ideology currently in vogue?



     


    I do agreed with you! Apple are just helping politicians!

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