Foxconn Bids $5.3 Billion To Over Take iPhone Display Maker Sharp

Foxconn's new building

According to the Wall Street Journal, Foxconn is in the process of biding for Sharp to replace them for producing iPhone displays. This merge would settle Sharp’s debt to Foxconn, and would have the company to take over Sharp in a bid for $5.3 billion.

Foxconn, Apple’s assembler, is said to have made a significant bid over other contenders to take over Sharp for $5.3 billion. The Wall Street Journal notes that a competing bid from Innovation Network Corp. of Japan (INCJ) was less than half of Foxconn’s offer. However, any deal must be approved by local officials, but it is said that Foxconn’s bid is more compelling due to the company taking on all of Sharp’s debt.

According to AppleInsider, the publication notes that…

“Reports from last year suggested that Apple could contribute to Foxconn’s purchase of Sharp. But Thursday’s report gave no indication whether Apple played any part in Foxconn’s $5.3 billion bid.”

In addition, Apple already has a big hand in Sharp’s LCD business, which includes the company’s Kameyama plant No. 1 in Japan that produces displays for Apple’s iPhone. The California-based company is said to have supplied more than half of the 100 billion yen ($987 million) needed to transition the plant from HDTV panels to smartphone LCDs, giving Apple operational control of the facility.

Speaking of the iPhone and other iOS devices, Sharp is believed to be the main supplier of Retina displays for the iPad Pro. However, according to the Wall Street Journal, Foxconn could be handling the Retina display for the iPad Pro instead of Sharp.

Source info: Wall Street Journal, AppleInsider