Sharp Ends Sony's Joint Venture With Hon Hai To Build LCD Factory In Chengdu

- Dec 29, 2018-

Sharp and Sony announced on the 24th that they will terminate the joint venture between the two large-size LCD panels and modules. According to the press release, Sony will directly sell the shares of Sharp Display Products Corporation (SDP) (equivalent to 7.04% of the issued shares) to SDP, which will pay the equivalent of Sony's initial investment (1 billion yen). . The above transaction will be completed by the end of June 2012.

Sharp plans to establish a liquid crystal panel manufacturing enterprise in China and Hon Hai, and the two sides have come to the final stage of the negotiations. Hon Hai is scheduled to build the panel factory in Chengdu, Sichuan Province, and Sharp will provide advanced technology.

According to reports, the Chengdu plant will produce small and medium-sized LCD panels, and Hon Hai has also obtained approval from the mainland and Taiwan authorities. The cost of the plant will exceed 100 billion yen and is scheduled to go live in 2013. Sharp will send engineers to the plant to provide technology on how to make high-quality panels and reduce manufacturing defects. At present, Sharp and Hon Hai have come to the stage of negotiating expenses. It is expected that Hon Hai may spend tens of billions of yen to acquire Sharp's technology.

According to the report, Hon Hai's goal is to mass-produce high-quality panels using Sharp technology at a low cost, and increase the production of smart phones and tablet computers for customers such as Apple Inc. In addition, Sharp also plans to sell its own branded mobile phones manufactured by Hon Hai on the mainland.