Sharp Corporation and Foxconn Electronics (also known as Hon Hai Precision Industry Co., Ltd) have formed a strategic alliance in a deal announced on March 30^th. Sharp, Japan’s largest LCD manufacturer, whose products include the popular AQUOS television line, is known for its ability to develop innovative technology. Foxconn, the world’s largest electronics contract manufacturer, is known for its highly efficient factories where it assembles products for Apple and many other companies. The combination of these strengths creates a new competitive force in the world of electronics.

The bulk of the US$3.5 billion investment made by Foxconn has been designated to go towards developing OLED. Terry Gou, the founder and CEO of Foxconn along with Kozo Takahashi, the President and CEO of Sharp may have plans to implement OLED technology for the massive smartphone market in the nearer term in addition to bigger panels down the road. Sharp’s proprietary method for manufacturing IGZO TFT-LCDs may have been another reason Foxconn sought to make this historic investment in Sharp. IGZO TFT-LCD is thinner, lighter and consumes less energy than standard LCD technology. Foxconn and Sharp have been working together for four years and this new agreement will serve to further advance their partnership to new levels.

Analyst firm PMA Research follows industry trends for the Professional Flat Panel Display market. In our monthly Distributor Sell-Through tracking report, Sharp dominated the +60” professional flat panel space capturing over 50% of total unit sales for the month of February 2016.