Although Sharp Electronics of Japan is “actively negotiating” with two companies, a company spokesperson has said that, “despite reports, no final decision has been made, and no one company has favoured status.”
The two companies in play are Innovation Network Corporation of Japan (INCJ) and Taiwan’s Hon Hai Precision Industry (Foxconn) and a decision should be made in about a month, Sharp said.
The company said it expected to conclude these negotiations in approximately one month and will release any new information when it is available.
Meanwhile, Sharp remains in deep financial crisis. In the three quarters ending December 2015, Sharp’s consolidated operating earnings were a negative (loss) 29 billion yen (US$240 million), while “recurring profit” was a negative 52.8 billion yen (US$440 million) and net income a negative 108 billion yen ($900 million).
There seems no chance that Sharp will achieve an earlier forecast 10 billion yen (US$83 million) profit for the fiscal year ending March 2016.
Also last week, The Wall Street Journal reported that Foxconn chairman Terry Gou said the contract manufacturer, which assembles the iPhone, expects to complete a deal to buy Sharp by the end of February.
Last year, China-based Hisense announced the purchase of Sharp’s TV factory in Mexico and the rights to use the Sharp brand name on TVs in the Americas for an unspecified period.