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July 28, 2017

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Gou 'disappointed' in the media

Hon Hai Precision Industry Co. Ltd. Chairman Terry Gou (郭台銘) yesterday said in an interview with the United Evening News that his absence from a Wednesday tour of a tenth-generation panel factory invested in by Sharp and Hon Hai was because of his disappointment with the media.

Gou said that the media only cares about how much he is willing to pay to acquire Sharp's shares instead of how the two companies can cooperate with each other in the future.

He further accused the media of paying no attention to the visiting group led by former Vice President Vincent Siew (蕭萬長), which according to Gou is of great importance for Taiwan-Japan cooperation.

Gou also panned the media for not fully utilizing the chance to visit the only tenth-generation panel factory in the world and only reporting on his absence.

Investing in Sharp

Described the merger of Hon Hai and Sharp as a "romance," Gou stated that the relationship between the two companies cannot improve under the tight scrutiny of "everyone."

Gou said that it would take time for the two companies to hammer out a final agreement and that there is currently no timetable for it to be sealed.

According to the chairman, the merger has to be able to facilitate the development of new and competitive products. To achieve this, both companies have to figure out a new way to operate.

The chairman stated that the cooperation between Hon Hai and Sharp will start in China. In 2013, they aim to reach 1 million smartphone sales in the mainland, using the Sharp brand and Hon Hai parts.

Sharp established its center for LCD televisions in China in April. With the help of Hon Hai in the future, Sharp plans to keep its position as the biggest seller of large-size LCD TVs in China.

Hon Hai Recognizes Losses for Investing in Sharp

Hon Hai yesterday released its financial statement for the first half of 2012, which listed losses of NT$4.5 billion for its investment in Sharp.

Hong Zhun Precision Industry Co., Ltd., a subsidiary of Hon Hai, included losses of NT$2.13 billion for investing in Sharp. In total, the entire Hon Hai group listed losses of NT$6.13 billion for their investments in the electronics giant.

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