Foxconn Technology Group is planning to close struggling units of Sharp Corp. after completing its US$3.5 billion acquisition of the Japanese electronics company.
Founder and chairman Terry Gou told Foxcoon shareholders he wants to speed up the monetization of Sharp’s patents to help turn the business around, according to the Wall Street Journal
“Sharp has lots of technology but it isn’t able to market it,” he said.
“Turning patents to technology, then turning technology to products, that’s what we are good at.”
Foxconn plans to close some of Sharp’s redundant and inefficient overseas operations, including some sales joint ventures, Gou said.
“Sharp has too many subsidiaries, which results in too much overhead,” he said.
Foxconn, formally known as Hon Hai Precision Industry Co., is the world’s largest electronics contract manufacturer and a key supplier for Apple Inc. and other major brands.
Gou said a new management team will oversee Sharp starting next month.
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