TOKYO (AP) – The head of Taiwanese contract manufacturer Foxconn pledged Saturday to turn around Japan’s Sharp Corp. by driving change at the struggling LCD panel and home appliance maker, as the two companies signed a takeover deal after a one-month delay.
Foxconn, also known as Hon Hai Precision Industry Co., is buying a 66 percent share in Sharp for 389 billion yen ($3.5 billion) in the first foreign takeover of a major Japanese electronics company. A giant in contract manufacturing, Foxconn assembles Apple iPhones and other products for name-brand companies.
The two companies held a signing ceremony Saturday at a large-screen LCD panel factory that they have jointly managed outside the west Japanese city of Osaka since 2012.
“I see us as a catalyst for change,” Foxconn founder and chairman Terry Gou said at a news conference following the ceremony. “If we cannot drive change in Sharp, our global competitors will eat us alive.”
Sharp, a leader in LCD technology and a maker of flat-screen televisions and smart appliances, has been hit hard by fierce price competition for LCD displays.