business

Sharp reported in LCD tie-up talks with Taiwan's Hon Hai

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By Reiji Murai

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The idea of Hon Hai Precision Industry, Ltd. buying Sharp's display production capacity has been around for some time. And it would certainly benefit Apple, since it would immediately give Apple a steady supply of displays for the iPhone, iPad, MacBook laptops and iMac desktop computers.

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Sharp Corp is in talks with Taiwan’s Hon Hai Precision Industry Co for a tie-up in its struggling flat-panel display business,

Under the proposed plan, Sharp would spin of the display business into a separate unit ahead of investment from Hon Hai and possible cash injections from other entities, including the state-directed Innovation Network Corporation of Japan,

Two points. First, how far the mighty -- Japan Inc. -- have fallen, that a company like Sharp must go hat-in-hand to try to get a tie-up from a Taiwanese company. Second, the "state-directed Innovation Network Corporation of Japan," putting money into Sharp is EXACTLY the kind of travesty the quote from the Bloomberg columnist here last week was directed at. Instead of finding truly innovative, start-up companies and giving them seed money so they can become the next Apple, or whatever, the LDP-led government is dumping it into highly inefficient, bloated, salaryman-led companies like Sharp. What a shame.

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What happened to the cartel issues for Apple in the US about Innovation Network backing JDI and Sharp at the same time?

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