Foxconn Has Controlling Stake in Sharp, Again
Japan’s Sharp Corp (6753.JP) has had an ongoing relationship with Taiwan based Foxconn (2354.TT) since August of 2016 when Foxconn purchased a 66% stake in the ailing company for ~$3.43b, a bit under $1b less than Foxconn’s original offer, as Sharp’s financials revealed some inconsistencies. This came about a year after Sharp sold the rights to its US brand and Mexican assembly factory to Chinese TV brand Hisense (000921.CH), a deal that was later seen as a mistake and a thorn in the side of the company. Much of the impetus behind Foxconn's original stake was the company’s Gen 10 LCD fab and Sharp’s leadership in IGZO TFT technology, which was relatively new at the time and could be shared with Foxconn’s other LCD assets, primarily Innolux (3481.TT), which it purchased in 2009.
Over the last few days Foxconn affiliates have purchased 51m shares of Sharp (500k voting rights) raising the company’s stake from 46.85% to over 50%, giving the company controlling interest once again. We believe the purchasing entity was a Cayman Island company known as SIO International Holdings (pvt), a shell corporation created by then Foxconn chairman Terry Gou, which also held title to the company’s Wisconsin ‘Super Factory’ that was touted by former President Trump as the ‘Eighth Wonder of the World’ at the groundbreaking. Most of the site remains idle and the 13,000 jobs said to be created by the facility, which was to be the first LCD TV panel production fab in the US, never happened.
It is hard to know for certain what is behind the increased Foxconn stake in Sharp, other than the thought that things in both the CE space and the display space are at low points, along with Sharp’s stock price, which is close to the low of the last 20+ years. Gou, while vowing to give away 90% of his fortune away, has a net worth of $6.3b, so tossing a few NT$ around bargain hunting Sharp is like every day folk looking to save a few bucks with a 2 for 1 coupon…
LG Display Waiting for the Apple OK for LTPO
According to South Korean trade press, LG Display (LPL) has submitted new batches of LTPO (Low Temperature Poly Oxide) displays for Apple’s (AAPL) qualification. If approved, the company will begin to produce such displays for the iPhone 14 Pro and Pro Max, whose displays are currently being produced by Samsung Display (pvt). The most recent qualification process follows a previous submission which did not meet Apple’s standards in reference to encapsulation and the camera cut-out and is expected to take about two weeks. If the most recent displays are not qualified it is expected to take another month before an updated batch can complete the qualification process.
Samsung Display, as we previously noted, has been ordering additional production equipment, likely under the idea that LGD will be a smaller supplier than originally planned due to the potentially late start. SDC has been producing LTPO displays for its customers since 2020 and is the only supplier of same to Apple. LG Display and China’s BOE (200725.CH) supply LTPS OLED displays to Apple for the iPhone 14 and 14+, with BOE the most recent addition to this exclusive roster. Apple’s strict requirements for displays, including the display technology and the ability to meet production yield requirements have been a problem for BOE in the past, as well as LG Display and even Samsung Display at times.
Over the last few days Foxconn affiliates have purchased 51m shares of Sharp (500k voting rights) raising the company’s stake from 46.85% to over 50%, giving the company controlling interest once again. We believe the purchasing entity was a Cayman Island company known as SIO International Holdings (pvt), a shell corporation created by then Foxconn chairman Terry Gou, which also held title to the company’s Wisconsin ‘Super Factory’ that was touted by former President Trump as the ‘Eighth Wonder of the World’ at the groundbreaking. Most of the site remains idle and the 13,000 jobs said to be created by the facility, which was to be the first LCD TV panel production fab in the US, never happened.
It is hard to know for certain what is behind the increased Foxconn stake in Sharp, other than the thought that things in both the CE space and the display space are at low points, along with Sharp’s stock price, which is close to the low of the last 20+ years. Gou, while vowing to give away 90% of his fortune away, has a net worth of $6.3b, so tossing a few NT$ around bargain hunting Sharp is like every day folk looking to save a few bucks with a 2 for 1 coupon…
LG Display Waiting for the Apple OK for LTPO
According to South Korean trade press, LG Display (LPL) has submitted new batches of LTPO (Low Temperature Poly Oxide) displays for Apple’s (AAPL) qualification. If approved, the company will begin to produce such displays for the iPhone 14 Pro and Pro Max, whose displays are currently being produced by Samsung Display (pvt). The most recent qualification process follows a previous submission which did not meet Apple’s standards in reference to encapsulation and the camera cut-out and is expected to take about two weeks. If the most recent displays are not qualified it is expected to take another month before an updated batch can complete the qualification process.
Samsung Display, as we previously noted, has been ordering additional production equipment, likely under the idea that LGD will be a smaller supplier than originally planned due to the potentially late start. SDC has been producing LTPO displays for its customers since 2020 and is the only supplier of same to Apple. LG Display and China’s BOE (200725.CH) supply LTPS OLED displays to Apple for the iPhone 14 and 14+, with BOE the most recent addition to this exclusive roster. Apple’s strict requirements for displays, including the display technology and the ability to meet production yield requirements have been a problem for BOE in the past, as well as LG Display and even Samsung Display at times.
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