Hon Hai Precision Industry Co (鴻海精密) shares gained in early Taipei trading after a Nikkei Shimbun report that the world’s largest contract manufacturing service firm for electronics and communication products plans to acquire control of a LCD venture between Japan’s Hitachi Ltd and Canon Inc for ￥100 billion (US$1.2 billion).
The stock advanced 0.4 percent to NT$117.50 as of 9:04am. The stock ended unchanged at NT$117 yesterday.
The companies are in final negotiations for Hon Hai to acquire ￥50 billion in each of two private offerings from the venture over the next two years, dropping Hitachi’s stake to 30 percent from 75.1 percent, according to the report.
PHOTO: REUTERS
The unit, Hitachi Displays, will use the funds to build a plant in Japan that will start operations in 2012, doubling the unit’s capacity, the report said.
Edmund Ding (丁祈安), a spokesman for Hon Hai Precision -Industry Co, did not -immediately answer calls to his mobile phone.
Hitachi declined to confirm the report on its subsidiary, with a spokeswoman saying: “The company is seeking measures to strengthen its operations.”
When the market share of Hitachi Displays and Chimei are combined, they controlled 17.3 percent of the world’s small and medium-size LCD panel market last year, beating the top-ranked Sharp Corp of Japan, which has a 16.5 percent share, the Nikkei said.
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