Foxconn tells Apple:Lets buy Sharp's LCD company together

Foxconn is planning to take over troubled Japanese behemoth Sharp's display business and requested Apple to be part of the deal.

According to the new proposal, Taiwan electronics giant, Foxconn - an Apple supplier - would take a majority stake in Sharp's liquid crystal display company. It has urged Apple to make an investment as part of the proposed deal, reported AFP.

However, there is no information about the proposal and the extent of Apple's possible involvement.

But it is being reported that Sharp's major lenders had estimated the firm's LCD operations to be worth around $2.5 billion.

The fall in price of small to medium size displays for smartphones could depress the price tag if negotiations drag on for a long time.

Foxconn - which is the trading name for Hon Hai Precision Industry - has also expressed its desire to purchase Sharp's 38% stake in a major display factory that the two firms jointly operate in Sakai city in western Japan.

The proposals would give Sharp "an opportunity to offload operations carrying a heavy downside risk", while letting it stay involved in the business and avoid massive layoffs.

Embattled Sharp -- also an Apple supplier and a leader in screens for smartphones and tablets -- has failed to move past years of gaping deficits, partly caused by steep losses in its television unit, which has been hammered by competition from lower-cost rivals, particularly in South Korea and Taiwan.

The Aquos brandmaker has been selling assets and going through painful restructuring to wipe away huge losses.

Earlier this year, Sharp said it was cutting 10% of its 49,000 positions worldwide as part of a turnaround plan.

The reported proposal came amid speculation that Sharp is in tie-up talks with the public-private Innovation Network Corporation of Japan, which is the top shareholder of rival Japan Display.

Some Sharp insiders favour the Japanese fund in order to keep the electronics maker's technology away from non-Japanese businesses.

(Image: Indiatimes)