Sharp and Foxconn will be working together on a factory that will produce displays for Apple’s popular iPhone. The news follows reports that the two companies had struck a deal to work together on LCD panel technology.
Foxconn will use Sharp technology to make iPhone displays
Sharp will be sharing display technology with Foxconn, according to Reuters, and the manufacturer will invest 66.9 billion yen (about US$844 million) in Sharp. The deal will give Hon Hai Precision, Foxconn’s parent company, an 11 percent stake in Sharp.
The company also bought a 46.48 percent stake in Sharp’s LDC plant in Sakai in March.
“Sharp can no longer handle everything on its own, from R&D to design, production, procurement, sales and services,” said Sharp CEO Takashi Okuda when the deal was first announced. “In the competitive global market, Sharp’s vertically integrated model has reached its limit.”
Along with displays for Apple’s iPhone, the joint factory will product components for other electronic devices, too.