Foxconn Electronics (Hon Hai Precision Industry) chairman Terry Guo has reportedly pledged his own 160,000,000 shares in the company to accumulate a fund for investments in Sharp's Sakai Factory; however, although Guo refused to comment about the purpose of his stock pledge, he guaranteed that the investments in the Sakai Factory is 99.9999% risk free and asked market watchers to give the investment more time for its benefits to start showing up.
As for future developments at the Sakai Factory, Guo believes that the 10G factory can supply the best panels, while LCD TV assembly as well as LCD TV-related component manufacturing are both strong business segments at Foxconn. With the partnership, the company is aiming for the large market for smart family products.
Guo also pointed out that panels used to account for 80% of an LCD TV's total cost, but it is now only 50%, therefore, Foxconn is trying to combine the advantages of the two partners to pioneer a brand new market that has never been explored.
Article translated by Joseph Tsai
