Sharp, the largest Japanese manufacturer of LCDs, will sell $808 million worth of shares to Foxconn as a part of tie-up for the production of LCD displays aimed at cutting down losses gained from the dwindling demand of LCD panels. Once these $808 million worth of shares are issued in favor of Foxconn, it will become the single largest stakeholder in Sharp, with a share of 11 percent, the New York Times reports. Also Read - Apple's iPhone maker Foxconn unveils 3 new electric vehicle prototypes
Sharp along with a number of Japanese manufacturers of LCD panels like Sony and Panasonic have been continuously making losses in the TV business. In fact, together the three manufacturers are expected to lose $17 billion, but Sharp is not the only company taking steps to reverse this problem. Also Read - Apple iPhone 13 series launch could be delayed due to chip shortage
Earlier in the day, Sony’s incoming CEO and President announced a number of changes to the company’s management structure, with him taking direct command of the TV business, in bid to revive its fortunes. Also Read - Apple to boost iPhone production in India to reduce Chinese dependancy: Report
Besides this, when one takes a look at this tie-up, one will notice this will give an immense edge to Foxconn as it manufactures iPads and iPhones for Apple and it already utilizes Sharp’s IPS technology for the displays of these devices.