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FOXCONN Technology is offering US$5.1 billion to buy Japanese electronics maker Sharp, claim industry insiders.
Sharp is currently struggling and in 2015 turned to the government-backed Innovation Network Corporation of Japan for funding in order to service its debts.
Foxconn’s interest in Sharp lies in its ambition to expand its business beyond product assembly and logistics, and increasing the range of its offerings. Sharp is one of the world’s largest makers of displays used in smartphones and tablets. A successful acquisition could lead to increased synergy and business wins from Sharp’s clients, which include Apple, Amazon and Xiaomi.
Others say INCJ has made a competing bid for Sharp. The offers will be accepted or rejected before the end of January, say the insiders.
Over the past four financial years, Sharp has racked up more than 1.1 trillion yen in losses, as it reckoned with competition from South Korean and Chinese rivals. It has a total debt of 791.8 billion yen as of 30 September 2015.
If the full takeover of Sharp succeeds, this will be the largest takeover for Foxconn since its 2009 acquisition of Innolux from Chi Mei Optoelectronics.