Sharp and Hon Hai Tie Up in 6G LTPS Panel Biz

Taipei, May 31, 2012 (CENS)--The Taiwan-based Hon Hai Group (foxconn), a leading EMS (electronics manufacturing services) provider, and Japanese display manufacturer Sharp, will set up a joint venture factory in Chengdu, Sichuang Province, China to produce small- and medium-sized display panels to win Apple orders, according to Japanese economic news Nikkei.

Some institutional investors said that Sharp was invited by Hon Hai to take part in the investment project to establish a sixth-generation (6G) low temperature poly-silicon (LTPS) thin film transistor-liquid crystal display (TFT-LCD) panel factory, which is scheduled to begin production in 2013.

With Sharp's participation, industry sources said, Hon Hai is expected to further consolidate its cooperation tie with Apple in supply iPhones and iPads. And the tie-up is deemed as Hon Hai chairman Terry Gou's tactics to fight against Korean counterparts by allying with Japanese partners.

The Nikkei report said that Hon Hai hopes to utilize Sharp's advanced technologies to mass-produce high-quality panels, so as to further increase its shipments of contract-assembled smartphones and tablet PCs. Sharp is also planning to sell own-brand cellphones contract supplied by Hon Hai.

Hon Hai in late March announced to acquire 11% shareholding in Sharp for NT$23.8 billion (US$793.3 million), as well as invest in Sharp's 10G panel factory. The two parties will cooperate not only in large-size TFT-LCD panels for exploring LCD TV market, but also in small- and medium-sized panels.