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Taiwan's Foxconn Technology, formally known as the Hon Hai Precision Industry Company, is set to become Sharp's largest shareholder with the acquisition of an 11-per cent stake.  Sharp, a company synonymous with Japan's dominance of electronics at one time, is now facing hard times and has forecast a loss of $3.5 billion, for the fiscal year ending this month.
Foxconn's stake acquisition is interpreted as yet another sign of the rise of China's manufacturing as Japan struggles. In addition to giving Sharp a cash infusion, the Foxconn deal, announced yesterday, would serve to help the Japanese company restore profitability to its TV manufacturing and liquid-crystal display businesses. Sharp is a major flat-panel television sets manufacturer, and still enjoys a reputation as a leading innovator in liquid-crystal display, or LCD, technology. However the company is bleeding profusely and like its Japanese rivals, Sony and Panasonic, has slipped behind more nimble South Korean companies like Samsung and LG. Headquartered in Taiwan, Foxconn has attained global leadership thanks to its sprawling factory campuses on the Chinese mainland. It is basically into contract manufacturing, for premier clients including Apple, for which it makes iPads and iPhones.
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