OSAKA -- Taiwan's Hon Hai Precision Industry plans to inject more money into Sakai Display Products, the Japanese LCD panel company it operates with subsidiary Sharp, the Nikkei learned Friday.
The money from Hon Hai, also known as Foxconn, will be used to help the struggling SDP funnel more funds into development and investment.
Sharp officials, who acknowledged the plan the same day, also said Sharp's electronic parts plant in Mihara, Hiroshima Prefecture, will be closed next fiscal year, which starts in April. Those operations will be transferred to the company's Fukuyama facility, also in Hiroshima.
The company is also considering relocating equipment and workers at its Hiroshima Plant, which develops and manufactures Sharp smartphones, to a different site on the compound.
Sharp and an asset management company operated by Hon Hai Chairman Terry Gou each own 37.6% stakes in SDP. The additional investment will boost Hon Hai's holdings in the company.
SDP supplies large liquid-crystal-display panels for TVs to Sharp and Samsung Electronics. Falling panel prices and orders in the April-September period eroded its earnings.
(Nikkei)
