Gou praises Sharp-Qualcomm tie-up
The China Post news staff
December 6, 2012, 12:13 am TWN
Terry Gou, chairman of Hon Hai Precision, said yesterday he views the partnership between Sharp and Qualcomm with pleasure, adding the move will not affect ongoing negotiations between Sharp and his own company.
Gou made the remarks during an interview with United Evening News, a day after Qualcomm announced to spend 9.9 billion yen to purchase a 5-percent stake in Sharp, becoming the Japanese electronic giant's biggest stakeholder, for now.
“I was notified of the new partnership by Sharp a few days ago,” Gou said. “This indicates a show of respect by Sharp for its relationship with Hon Hai, and I appreciate that respect.”
He said he views the new partnership with pleasure, calling Qualcomm's stake purchase the “right move.”
According to Gou, Qualcomm keeps a manufacturing facility in Longtan, Taoyuan County, making the “Mirasol” panel using the micro-electrical-mechanical-system (MEMS) technology.
The facility was a joint venture between Hon Hai subsidiary Cheng Uei and Qualcomm, which eventually purchased the entire stake in the facility, he said.
“Yet Qualcomm ran into a bottleneck with the MEMS display technology, and its stake purchase in Sharp will help rectify that problem,” he said. “Sharp, meanwhile, will get the money it needs. The partnership has strategic significance and represents a mutual win for both firms.”
He further said that the new partnership will not affect Hon Hai's rights to purchase a 9.9-percent stake in Sharp, adding negotiations will be ongoing until a final decision is made before March 31 of next year.
Separately, Hon Hai will launch its 70-inch LCD TV in April next year, the Central News Agency reported yesterday, citing unnamed sources within the firm.
The TVs will be bundled with plans offered by telecom and cable operators, the sources said. The offerings will come after the huge success from Hon Hai's 60-inch TVs.