Taipei, Taiwan manufacturing giant Hon Hai Precision Industry Co. and its Japanese subsidiary Sharp Corp. are planning to set up a company that will produce cameras for car use, the Nikkei Asian Review reported Monday.
Citing sources close to the investment, the Japanese newspaper said Hon Hai, also known as Foxconn on the global market, and Sharp will invest about 3 billion Japanese yen (US$28.04 million) in the joint venture.
Hon Hai will take a 51 percent stake in the venture with Sharp owning the remaining 49 percent, the sources said.
The sources said the joint venture is expected to use advanced 8K resolution technology to produce displays for automotive cameras, with the objective of supplying such devices to car makers worldwide.
According to the Nikkei Asian Review, Sharp already produces automatic cameras focused on developing 8K technology for the commercial production of TVs and cameras.
Hon Hai, the world's largest contract electronics maker, is good at mass producing products, the report said.
The report added that the joint venture is expected to take advantage of Hon Hai's sales networks in China, Taiwan, North America and other areas in the world to market its automatic cameras.
The report said the move comes amid growing demand for electronic components at a time when more and more autonomous driving technology is being developed.
In early February, FIT Hon Teng Limited, a Hong Kong-listed subsidiary of Hon Hai issued a statement indicating it has reached an agreement with Sharp to establish a joint venture to develop technology and produce electronics components for car use.
For its part, Sharp has been keen to raise its stake in Japan-based smartphone camera lens supplier Kantatsu Co., Taiwanese media recently reported that Sharp boosted its stake in Kantatsu from 44.3 percent to 53.5 percent in January.
Hon Hai currently owns a 66 percent stake in Sharp after acquiring the company for US$3.5 billion in August 2016, making it the first Taiwanese firm to take a majority stake in a major Japanese tech firm.
Source: Focus Taiwan News Channel