Foxconn Shelves Sharp Investment Plan

Foxconn Electronics (Hon Hai) is reported to have abandoned its plan to invest in Sharp, following news that the Japanese firm has secured loans of ¥200 billion ($1.7 billion) from its major lenders.

A Japanese-language report claimed that the two companies had already reached a consensus to end negotiations. However, some market observers have speculated that Sharp and Foxconn’s jointly invested Sakai Display Products (SDP) could only have advantages over rival firms’ technology for 2-3 years, so may need to start seeking new plans for related industries.