Jan 2, 2017: Foxconn has increased its stake in Japan-based Sakai Display Products (SDP), a joint venture between Foxconn and Sharp Corp.
Foxconn chairman Terry Guo’s son Guo Shou-cheng has filed an application to indirectly invest US$448.04 million (JPY52.14 billion) in SDP. The application has been approved by Taiwan’s Investment Commission.
According to industry insiders, Foxconn aims to take controlling stake in SDP’s 10G production plant, which specializes in TV panels like OLED and flexible OLED panels.
The investment firm will participate in a capital expansion project initiated by SIO International Holding, an overseas investment arm of the Foxconn Group. SIO International will take 436,000 SDP shares for JPY17.17 billion from Sharp. It will also invest JPY34.97 billion into SDP.
Sharp, in which Foxconn owns 66% stake, has said that it has completed the deal with SIO international. After the deal, Foxconn’s stake in the Sakai plant through SIO will rise to 53.05% from 37.61%. Sharp’s stake in SDP will fall to 26.71%, said a Sharp statement.
Foxconn is boosting its production capacity for OLED displays as it may plan to supply OLED panels to Apple for its next-generation iPhones.