Struggling Sharp Corp. is entering a crucial stage in its negotiations over its planned capital alliance with Hon Hai Precision Industry as the chief of the Taiwanese business partner is slated to meet with Sharp's president next week.

Hon Hai Chief Executive Officer Terry Gou is expected to arrive in Japan to negotiate the amount and ratio of investment in Sharp, while the cash-strapped Japanese electronics maker is accelerating efforts to reduce personnel and restructure in order to receive loans from banks.

The two announced in March that Hon Hai would obtain a 9.9 percent stake in the Japanese manufacturer for ¥550 per share to become Sharp's leading shareholder, while Sharp had eyed gaining ¥66.9 billion through the tieup and strengthening its financial standing.