Foxconn to Buy Sharp LCD Business With Apple Investment?

The Nikkei Asian Review reports Taiwanese electronics maker Foxconn (aka Hon Hai Precision Industry) is in talks to buy the Sharp LCD business, with part of the investment coming from Apple.

Foxconn The Sharp LCD business is currently in the red, with operating losses reaching 13.7 billion yen in the April-June quarter. A deal with Foxconn would provide the troubed Japanese company much needed funds, while allowing it to remain involved in the business and retain Japanese staff in domestic production bases.

The deal is also relevant to Apple, since it would eliminate the possibility of Sharp merging with Innovation Network Corp, the top shareholder of LCD rival Japan Display. Such a merger would reduce Apple's display supplier options, make controlling prices more difficult and prevent the handing of key technogies to a non-Japanese company.

In addition Nikkei reports Foxconn also wants to buy the Sharp-owned 38% share in Sakai Display Products, a TV LCD panel maker jointly run by the two companies.

Go Foxconn Offers to Buy Sharp's LCD Business (Nikkei Asian Review)