Hon Hai Offers Integrated Manufacturing Service for Apple

Taipei, March 29, 2012 (CENS)--Via alliance with Sharp, Hon Hai will obtain IGZO technology, build a 10th-generation FPD (flat panel display) plant, and establish dedicated FPD production line for Apple iTV, thereby offering an integrated production service for Apple.

Industry insiders noted that Sharp's eighth-generation FPD plant is invested in by Apple and dedicated to the production of iPad and iPhone. Under the encouragement of Apple, Hon Hai will invest in the 10th-generation plant of Sharp, which will be dedicated to the production of iTV, scheduled for rollout by the end this year.

Sharp owns the technologies of IGZO, LTPS, and IPS, as well as capacities for those technologies, which are indispensable for Apple's product development roadmap.

Institutional investors noted that cooperation with Sharp and Apple can help Hon Hai cope with the competition of Korean rivals and extend its reach to upstream components and parts, thereby boosting its gross margin.

Sharp is a leader for IGZO technology, which is indispensable for the high-resolution FPD for new iPad. Under the requirement of Apple, Samsung and LGD are also using IGZO technology in producing new iPad panels.

In addition to iTV, Hon Hai also intends to supply FPD for iPhone and iPad. Therefore, it has invested in 5.5-G LTPS plant and 6-G LTPD plant in mainland China.