Remember that news item about Sharp likely getting acquired? Well, the deal has been signed and the famous contract manufacturer, Foxconn acquires Sharp. Foxconn will pay $3.5 billion to have a two-thirds stake in Sharp and then proceed to turn the struggling company around.
Foxconn acquires Sharp: Taiwan meets Japan
Sharp has been struggling in recent times. Like many other Japanese firms, it has not done well against the army of Asian competitors that have risen in recent years.
As Foxconn acquires Sharp, it is betting on using Sharp’s know-how in display technology to turn the company around. Moere specifically, Sharp’s proprietary IGZO (indium gallium zinc oxide) display technology is said to be more energy-efficient than OLEDs and is used in Apple’s iPad. Even at that, the company says it has plans to manufacture OLED panels too.
The turnaround of Sharp won’t be easy, though, as Foxconn will be facing a decade-old problem.