Foxconn Investing In Sharp Again, Stoking iTV RumorsBy: Shaylin Clark - June 18, 2012
Back in March we brought you news that Taiwan-based Hon Hai Precision Industry had made a $1.6 billion investment in Sharp in an effort to save the struggling company from potentially massive quarterly losses. The deal also prompted speculation about Apple’s rumored iTV. Hon Hai is the parent company of Foxconn, one of Apple’s primary manufacturing partners, and an investment in Sharp was seen as an easy way to get the company’s LCD displays into Apple’s rumored HDTV.
Those rumors have gained new life today on news that Hon Hai is preparing to make another major investment in Sharp. According to a report by Reuters, Hon Hai and Sharp are currently negotiating a deal whereby Hon Hai will purchase even more of Sharp’s shares. In the past week Sharp’s stock has taken a significant dip, prompting the company to approach Hon Hai again.
It is, of course, entirely possible that these investments have nothing at all to do with Apple’s HDTV (usually dubbed either the iTV or the Apple TV). After all, not everything about Foxconn is also Apple related. On the other hand, Foxconn is Apple’s main manufacturer for iOS devices, and these deals do provide a shortcut between Sharp and Apple, should Apple decide to use Sharp’s LCD displays in the iTV.