Foxconn Joins With Sharp For A New iPhone Display Plant

The newly discovered friendship in the tech world between Foxconn and Sharp, will be put to work on a new project. Foxconn's parent company, Hon Hai Precision Industry, plans to build a new plant in Chengdu, China, to manufacture displays for Apple's iPhone and other electronic components, as well.

The Japanese partner will receive "tens of billions of yen in fees", as Reuters reports, to provide technological expertise for these new facilities.

Just a few days ago Sharp killed its partnership with Sony, announcing that its subsidiary, Sharp Display Products, would buy back the 7.04 shares of Sakai plant, owned by Sony.

Sharp has been in serious financial trouble, after losing 376 billion yen (£3 billion/$4.75 billion) in the last fiscal year. After the media has reported that Foxconn and Sharp were working together at the new facilities, Sharp's shares rose by 7 per cent however.

The partnership between the two companies actually goes deeper than that though, as in March, Foxconn agreed to buy a 46.48 per cent share of Sharp's liquid crystal display manufacturing plant in Sakai.

At the time, many suggested that the Sharp-Foxconn alliance is strategically planned to get Apple's future orders for the rumoured iTV.

Source: Reuters