According to Nikkei business daily, Sharp will supply the technical know-how to Hon Hai Precision Industry for a new plant in Chengdu to produce screen panels for iPhone. Hon Hai, being the parent company of Foxconn, invested about 46% stake in Sharp’s LCD plant in Sakai in March.
Apple appears to be the main driving force for the team-up between Sharp and Hon Hai. The partnership is positioned to become a major supplier of displays for Apple, joining Samsung and LG to meet Apple’s demand. The investment of Apple’s long time partners in Sharp in March also roused suspicion of a forth coming LCD TV from Apple.