LONDON – Japanese electronics giant Sharp is planning a 50/50 joint venture with contract manufacturer Hon Hai Precision Industries, otherwise known as Foxconn, according to reports that cite a Nikkei as their source.
The joint venture is set to be created in Taiwan by the end of 2011, the reports said.
Sharp is a leading manufacturer of LCDs in fierce competition with Samsung. It was recently announced that Hitachi had pulled out of talks about a joint venture with Foxconn to enter into a proposed Japanese-government backed LCD venture with Toshiba and Sony.
Chimei Innolux (CMI) is a subsidiary of Foxconn that will become a 50/50 joint venture. The idea behind the union is to allow Sharp and Foxconn to reduce the cost of acquiring components such as glass substrates and color filter films, the reports said. Under the terms of the agreement Sony will continue to make and sell large size of 60-inch and greater diagonal size and supply them to CMI. CMI will supply 20- to 40-inch panels to Sharp.
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