X-bit Labs reports Foxconn secured LCD panel supply by acquiring shares of Sharp. Under the strategic global partnership, Foxconn will be able to buy up to 50 percent of large-size LCD panels and LCD modules manufactured by Sharp at its LCD panel plant in Sakai-city in Osaka, Japan.
Sharp Corp. on Tuesday entered into agreement with Hon Hai Precision Industry Group (better known as Foxconn), the world's largest contract maker of electronics. The companies are set to collaborate in various business fields; for example, Foxconn will be able to buy up to 50% of large-size LCD panels and LCD modules that Sharp makes at its factory.
The situation on the market of electronics is causing different companies to collaborate to lower research and development (R&D), design and production costs. Today, many companies simply cannot afford buying new manufacturing equipment and keep production capacities utilized at 100%. As a result, for many years manufacturing of LCD panels, highly-integrated chips, memory and other commodities have been consolidating. For some time, Sharp has been producing LCDs in a joint venture it co-owned with Sony Corp. Going forward, it will operate its fab with Foxconn.
As it appears, Foxconn recognized high reputation of Sharp's LCD technology and decided to procure ultimately up to 50% of large-size LCD panels and LCD modules manufactured at the LCD panel plant in Sakai-city, Osaka, Japan.