It was announced Tuesday that major Apple supplier Foxconn will take an 11 percent stake in Japanese electronics firm Sharp. The agreement is seen not only to aid Sharp financially, but will also involve joint development of LCD technology between the two companies.
Jim Tanous, The Mac Observer:
As part of the agreement, Sharp will issue US$800 million worth of new shares to Foxconn as well as provide a 46.48 percent stake in a flat-panel television factory in western Japan where the two companies will now produce televisions together.
“Sharp can no longer handle everything on its own, from R&D to design, production, procurement, sales and services,” said incoming Sharp CEO Takashi Okuda. “In the competitive global market, Sharp’s vertically integrated model has reached its limit.”
Sharp will use the proceeds from the shares to invest in new LCD technology for both larger displays, such as are found in televisions and desktop monitors, and smaller screens that are used in tablets and smartphones. The new relationship is expected to result in joint development of products as they move forward.
While Apple isn’t officially involved in today’s agreement, this should help Apple maintain its competitive edge in new technologies for use in Apple products.