Japan’s Sharp Corp. is in talks with Taiwan’s Hon Hai Precision Industry Co. for a tie-up in its struggling flat-panel display business, Reuters reported, citing sources.
Under the proposed plan, Sharp would spin off the display business into a separate unit ahead of investment from Hon Hai and possible cash injections from other entities, including the state-directed Innovation Network Corporation of Japan, the sources said.
Last month Sharp chief executive Kozo Takahashi said he was open to major restructuring of the company’s liquid crystal display (LCD) and consumer electronics businesses as investors and analysts clamored for an overhaul.
Earlier tie-up talks between Hon Hai and Sharp fell through in 2012 after the Japanese company balked at demands that it said would have given the Taiwanese firm too much control.
The two firms jointly operate a plant that makes large LCD panels in Osaka in western Japan, the report said.
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