Foxconn's Acquisition of Sharp and Its Consequences

• BACKGROUND
• FOXCONN'S BUSINESS DEVELOPMENT PLANS
  • Business Transformation Surrounding 11 Screens, 3 Networks, 2 Clouds
  • Eyeball Project Centers on Display Panels
  • Vertical Integration to Consolidate Panel Business
    • Foxconn's Panel Capacity Concentrates in a-Si and 6G Lines
• IMPACTS OF FOXCONN'S ACQUISITION OF SHARP
  • Favorable Impacts
    • Improving Profitability on Products with Higher Added Value
    • Enhanced Management and Dispatch Capabilities for High-end and Free Form Panels Helps the Growth of Orders
    • Sharp's Technology and Patent Ownerships to Make Up What Foxconn Lacks
  • Unfavorable Impacts
    • Demand for LTPS Displays Remains Obscure; AMOLED Eating Away High-end Market Share
• MIC PERSPECTIVE
  • Scenario One: Foxconn Takes Over Sharp
  • Scenario Two: Foxconn Fails to Take Over Sharp
• APPENDIX
  • Glossary of Terms
  • List of Companies

Foxconn's Acquisition of Sharp and Its Consequences

After many twists and turns, the deal between Foxconn and Sharp is yet to be finalized. During the course of the negotiation, Japan's government-led INCJ (Innovation Network Corporation of Japan) once came forward to compete with Foxconn to bail out Sharp, turning an M&A activity into an important issue of international cooperation between Japan and Taiwan. This report provides an overview of ongoing Foxconn-Sharp deal and an insight into favorable and unfavorable impacts of the deal on Foxconn; examines the consequences of the success and failure of Foxconn-Sharp deal.