Foxconn Technology Group, the world’s largest contract electronics manufacturer, has offered about ¥600 billion ($5.1 billion) to buy ailing Japanese electronics maker Sharp Corp., …
Sharp Corp., well known Japan’s electronics maker, informed that a second investment from US chipmaker Qualcomm Inc. encountered some difficulties and therefore it was delayed. The delay in Qualcomm investment in Sharp was mainly driven by the inability of meeting terms of the original accord. Certainly, the setback will have an impact on Sharp Corp. which has been struggling to restore its balance sheet.
After all it happened. South Korean giant Samsung Electronics Co. informed that it decided to purchase a 3% stake in Japan’s electronics producer Sharp Corp. for as much as $110 million. Certainly, Samsung Electronics’ investment is much in the line with the strategy of struggling Sharp Corp.
Panasonic Corp. reported stronger-than-expected profits in its third fiscal quarter due to weakening of the yen and cost reductions that helped the company to recover from huge losses made last year. Sharp Corp. witnessed also similar improvements in the period.
On the 1st of November, Sharp Corp. posted its revised forecast of record losses of approximately $5.6 billion. The revised full-year net loss forecast shows that Japan’s electronics maker is struggling. The company admitted that it would not be able to survive on its own; therefore it was considering cooperation with other companies.
The Japanese corporation, Sharp is on the verge of going broke and the only choice left with the company to ensure its continued survival seems to be to give up its consumer business and openly accept a future as a supplier of components to Hon Hai Precision Industries, its affiliate based in Taiwan.
Well, it has been learned that Apple Inc.’s iPad 3 tablet computers go on sale Friday, they won’t be equipped with Sharp Corp.’s liquid crystal display panels because of a delay in the Japanese electronics maker’s delivery. Samsung Electronics Co. will supply the screen for Apple iPad 3 after LG Display Co. and Sharp Corp. didn’t meet the U.S. company’s quality requirements.