Sharp announced a strategic partnership with Taiwanese manufacturer Hon Hai, the holding company of Foxconn, to cooperate on LCD production. Hon Hai Precision Industry has agreed to take up to 50 percent of large LCD panels from the Sharp Display Products plant in Sakai-city, Osaka, Japan. Companies associated with Foxconn chairman Terry Gou will also acquire a 46.5 percent stake in the manufacturing site for JPY 66 billion, reducing Sharp's stake to 46.5 percent and leaving Sony with 7 percent in the plant. Sony also agreed an option to sell its shares to Sharp at a later date. In addition Sharp will issue new shares to Hon Hai, Foxconn and associated companies for a total JPY 66.9 billion, giving the Taiwanese group a 9.9 percent stake in Sharp. Sharp said the move will help it stabilise its LCD operations, which have been suffering from tough competition and price declines.
