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In the latest report from Japan's Industrial News, it was revealed that Sharp, currently undergoing operational restructuring, has received support from Hon Hai, significantly increasing the likelihood of its recovery. Hon Hai aims to collaborate with Sharp in order to secure Apple's future orders for OLED panels used in iPhones sold in 2018.
According to the report, Hon Hai is planning to utilize the idle facilities and existing equipment at the Kuchayama factory area to develop mass production technology for OLED panels. The company intends to start limited production in mid-2017. In addition to the Kameyama plant, other previously closed facilities such as the "Triple First Factory" may also be reactivated for OLED panel manufacturing. Furthermore, the joint 10th-generation panel factory operated by Hon Hai and Sharp is considering scaling up the production of large-size OLED panels for television use.
Asahi Shimbun also reported on the 13th that details of Hon Hai’s global strategy following its acquisition of Sharp have come to light. Besides aiming to capture Apple’s 2018 OLED panel orders for the iPhone using Sharp’s technology, Hon Hai is also leveraging Alibaba Group, a leading e-commerce company in China, to open new sales channels for Sharp products.
According to sources cited by Asahi Shimbun, Hon Hai has made several behind-the-scenes adjustments. The company now plans to begin mass-producing OLED panels in 2018 for supply to Apple. Initially, Hon Hai had intended to invest heavily in separate OLED production, but it has since shifted its focus to using these funds to support Sharp's acquisition and growth. The initial investment in the production line is set at 50 billion yen, with further hundreds of billions planned for future expansion.
Currently, Sharp is focused on R&D for the foundational technology of OLED panels but lacks the capital for large-scale investment. On the other hand, Hon Hai has financial resources but faces technical challenges. This collaboration is expected to create a complementary relationship between the two companies, combining their strengths to drive innovation and market competitiveness.