Taiwan billionaire Terry Gou built a manufacturing empire that assembles iPhones and iPads. His Foxconn Technology Group may be key to ensuring Sharp Corp.'s survival and a stable supply of components for Apple Inc.
Sharp's shares collapsed to their lowest in 37 years in Tokyo on Friday and its bonds fell after the maker of Aquos TVs forecast an annual loss of ¥250 billion, bigger than the company's market valuation. That slump prompted Foxconn to announce Friday it will seek a lower price for its 9.9 percent stake while pledging to forge ahead with the deal.
Foxconn wants a stake in Sharp to secure access to the latest technology for parts used by its biggest customer, Apple. In offering a lifeline, Gou is betting that Sharp will continue to provide it with key components for the iPads and iPhones that Foxconn assembles, while ensuring one of Apple's important suppliers survives.