Sharp Set to Sell TV Factories to Foxconn for $667 Million – Report

Sharp to Sell Overseas TV Assembly Plants to Foxconn to Get Cash

by Anton Shilov
12/04/2012 | 11:55 PM

Sharp, a struggling major consumer electronics company, will sell its TV assembly facilities outside of Japan to Hon Hai Precision Industry (better known as Foxconn Electronics), the world’s largest contract maker of various computer and electronics devices. The factories located in different parts of the world will allow Foxconn to make TVs for its customers locally, which partly ensures steady supplies.

 

For about ¥55 billion (approximately $667 million), Foxconn will acquire television factories in Mexico, China and Malaysia, which will allow it to manufacture the forthcoming Apple TV-sets in different parts of the world, reports Reuters news-agency citing a Japanese news-paper that quoted its unnamed sources. It is particularly interesting to make them in Mexico so to ensure steady supply to customers in the U.S. It is noteworthy that Sharp will not sell its TV manufacturing facility in Poland.

With TV assembly facilities in place, Foxconn will not need to ensure supply of LCD panels in high quantities to make sure that the factories do not stand idle.

Sharp, which market capitalization has decreased by three times this year, is expected to lose ¥450 billion ($5.7 billion) this fiscal year, which means it badly needs money to survive. Back in November it transpired that Intel and Qualcomm were in talks to invest around ¥30 billion ($378 million) into Sharp.

Sharp and Foxconn did not comment on the news-story.