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Sharp's Sakai LCD operator to list in Taiwan: Hon Hai

2012/08/05 20:50:04

Taipei, Aug. 5 (CNA) Taiwan's Hon Hai Precision Industry Co., the principal shareholder of Japan's Sharp Corp., said Sunday that Sharp has agreed to list the operator of its most advanced display factory on Taiwan's stock exchange.

The listing of Sakai Display Products, a subsidiary of Sharp that operates its 10th generation LCD plant in Sakai in western Japan, is expected to take place in 2014, Hon Hai Chairman Terry Gou said during a local TV interview.

The move will save on tax expenses for Sharp and Hon Hai -- which have formed a capital and production tie-up -- due to the lower tax rate in Taiwan than in Japan, he said.

Gou also noted that the capacity utilization rate of the Sakai plant has increased to between 60 and 70 percent, and said the figure will rise to 80 percent by the end of this year and to 100 percent in 2013, as Hon Hai is looking for more new customers for the plant.

Hon Hai, the main manufacturer of Apple Inc. products, announced in late March its acquisition of a roughly 10 percent stake in Sharp for US$800 million, making it the Japanese company's largest shareholder.

Under the deal, Gou also agreed to acquire a 46.5 percent stake in the Sakai LCD plant for an additional US$800 million to obtain three seats on the board of directors.

(By Jeffrey Wu)