Foxconn Bids For Sharp

[ The Wall Street Journal ] Foxconn has bid about ¥625 billion (~US$5.3 billion) to take over Sharp. Japan’s Innovation Network Corp., which owns a controlling stake in Japan Display Inc. (JDI) has also offered a bid of ¥300 billion for Sharp.

Japan wants Sharp to remain a Japanese company, but it depends on Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc.; together are owed between ¥500 and ¥600 billion. Will they choose money or patriotism?

Here’s my take. Foxconn builds a lot of stuff for a lot of companies including Apple. Apple procures most of its displays from LG Display (LGD). If Foxconn succeeds in bidding for Sharp, Foxconn will most likely be able to offer incredible deals integrating LCDs manufactured by Sharp to Apple and other companies like Dell, HP, etc.

Both LGD and Sharp can manufacture displays with IPS technology with oxide/IGZO backplanes, though LGD is considered to be the best IPS LCD supplier in terms of quality, engineering, and quantity as of this writing. Foxconn might also be interested in Sharp’s thin film solar panel manufacturing technology and capability.