Apple supplier Sharp names Foxconn exec as CEO to spearhead revival

“Japan’s Sharp Corp has named a top Foxconn executive as CEO and said it would seal a $3.5 billion stake sale to the Taiwanese firm ahead of schedule, as the display maker seeks a return to profit in the face of slowing smartphone sales,” Makiko Yamazaki and J.R. Wu report for Reuters. “Sharp said Foxconn Vice Chairman Tai Jeng-wu will succeed Kozo Takahashi, becoming the first outsider to lead the century-old firm that began making belt buckles and mechanical pencils.”

“For Sharp, a revival beckons under the leadership of Tai, a 30-year veteran of Foxconn, the world’s largest contract electronics manufacturer. Tai has extensive experience running Foxconn’s Shenzhen operations and played a central role in the stake negotiations, people at Foxconn told Reuters,” Yamazaki and Wu report. “‘Tai is No. 2 at Hon Hai. He speaks Japanese. He was selected from a comprehensive perspective,’ Takahashi said at an earnings briefing.”

“Sharp will get a boost from a takeover that would vastly expand sales channels for its displays. In return, Foxconn will gain control of Sharp’s advanced display technology and strengthen its pricing power with Apple Inc, a major client of both companies,” Yamazaki and Wu report. “Sharp also lags South Korean rivals in organic light-emitting diode (OLED) technology, which Apple is widely expected to adopt for future versions of its iPhone devices. But Foxconn chief Terry Gou has expressed preference for Sharp’s strength in indium gallium zinc oxide (IGZO) technology. ‘IGZO is Sharp’s pride,’ said Innolux Chairman H.C. Tuan. ‘I am hopeful we can cooperate with Sharp in this area.'”

Read more in the full article here.

MacDailyNews Take: Hopefully, Sharp can be brought back on track.

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Hon Hai in no hurry to finalize Sharp deal – June 26, 2013
Sharp to replace chairman, president after losses – May 14, 2013

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