Sharp to suspend tie-up talks with Hon Hai, report says

Feb 23, 2013

Struggling Japanese electronics maker Sharp plans to suspend tie-up negotiations with Taiwan's Hon Hai and search for new capital partners, local media reported on Saturday.

Cash-strapped Sharp had been trying to seal a capital-injection deal with Hon Hai Precision, also known as Foxconn, by a March 26 deadline.

But Sharp said it would be "difficult to conclude the deal by the deadline due to various factors, including different opinions on cooperation in the field of small- and mid-sized LCDs", the Mainichi Shimbun said.

The recent decline in Sharp's share value was another factor behind the suspension, the daily added.

It was not known if the suspension was permanent but Sharp would now shift its focus to other companies, the newspaper said.

Kyodo News added that the two firms would maintain their existing cooperation arrangement at Sharp's LCD factory in Sakai, western Japan.

Last year, Sharp reached an $800-million capital injection deal with Hon Hai, which makes Apple gadgets in China, but the deal stalled as Sharp's share price nosedived.

In December, the company said it had struck a separate $112 million with chipmaker Qualcomm that would see the pair develop energy-efficient for smartphones using the Japanese firm's technology.

The maker of Aquos-brand electronics, like rivals Sony and Panasonic, has been hammered by credit rating downgrades and record losses, which saw the century-old firm warn about its own survival last year.

Sharp said earlier in the month that it had lost 424 billion yen ($4.5 billion) for the nine-month period, while keeping its full-year net loss estimate unchanged at 450 billion yen.

has embarked on a painful restructuring including thousands of job cuts and slashed wages from the factory floor to the .

It also said it would put up real estate as collateral for desperately needed , including its Osaka headquarters, as it pursued tie-ups with domestic and foreign firms.

Explore further: Why the Sony hack isn't big news in Japan

add to favorites email to friend print save as pdf

Related Stories

Sharp shares soar in Tokyo on profit report

Jan 11, 2013

Sharp shares jumped nearly 13 percent in Tokyo trading on Friday after a Japanese media report said the embattled electronics giant logged an operating profit in the last quarter of 2012.

Japan's Sharp in TV tie-up talks with Lenovo

Jan 17, 2013

Shares in struggling Japanese electronics maker Sharp shot up 7.30 percent on Thursday on reports it is in talks with Chinese computer giant Lenovo Group to work together on the production of televisions.

Sharp shares hit by reports of Hon Hai deal rethink

Aug 06, 2012

Shares in Japan's Sharp, which slumped 28 percent at the end of last week after a poor earnings report, fell further Monday after Taiwan's Hon Hai Precision said it would renegotiate a deal to invest in it.

Recommended for you

Why the Sony hack isn't big news in Japan

8 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

13 hours ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

14 hours ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.