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Sharp to build PC factory in China, near Foxconn plant

Electronics maker to tap group's procurement power to turn around the business

Flags of Sharp and parent Foxconn fly at the Japan-based company's plant Sakai, Japan. 

TOKYO -- Sharp plans to set up a manufacturing base for personal computers as early as next year in eastern China, aiming to slash costs by setting up shop near a production hub run by parent Hon Hai Precision Industry, or Foxconn.

The new facility in Shangdong Province will become Sharp's second PC production site in China. When it acquired the computer business from Toshiba in October, the Japanese electronics maker took over a factory in Hangzhou as well. Manufacturing will be handled by a subsidiary, capitalized at $66.6 million, it formed in August with a local partner.

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