Hon Hai Precision Industry Co’s (鴻海精密) rescue of Sharp Corp promises to bolster the Taiwanese electronics maker’s ambitions for a bigger role in “clean” energy in some of the world’s most-polluting countries, while also providing a firmer footing in Japan.
Hon Hai, also known as Foxconn Technology Group (富士康), has announced plans to improve energy efficiency at its factories and introduce more solar power in China and India. By buying Osaka-based Sharp, Hon Hai gains a company regarded as a pioneer in the development of solar panels.
“A merger with Sharp would give Foxconn access to a well-known brand name under which to sell its solar panels and also strong distribution networks in Japan for wider solar-as-a-service offerings with smart home and battery technologies,” Bloomberg New Energy Finance head solar analyst Jenny Chase said by e-mail.
In October last year, Hon Hai said that it planned to build 400 megawatts (MW) of solar power capacity by 2018, starting in China’s Henan Province, as part of an initiative led by Apple Inc.
The company makes iPhones and iPads for Apple at its factories in China.
In June last year, Foxconn, with Japan’s Softbank Group Corp and Bharti Enterprises Pvt of India, announced the establishment of a US$20 billion venture to add 20 gigawatts of clean-energy capacity in India.
In December last year, the venture won its first solar project in India, a 350MW solar plant in southern Andhra Pradesh.
The acquisition of Sharp gives Hon Hai access to technologies for distributed power and “smart community” businesses, Tokyo-based Rikkyo University political economy professor Andrew DeWit said.
“Considering Japan’s already large and expanding focus on national resilience via smart communities, Foxconn would be unwise not to look at the big picture as opposed to merely the short-term bottom line,” he said by e-mail.
Hon Hai earlier last year said that it was in talks with UK investors to raise about US$1.7 billion to make its operations in China more environmentally friendly, with plans for solar farms, to replace air conditioning systems and to install efficient lighting systems.
By itself, Foxconn has the capacity to make at least 400MW per year of solar products in Funing, China.
The company also has a module plant in Juarez, Mexico, according to Chase.
Sharp, which began developing solar energy in 1959 and remains its oldest major manufacturer, has 500MW of cell capacity and probably has some module capacity, she said.
Still, the ultimate fate of Sharp’s solar business is unclear even after the deal’s conclusion.
Hon Hai is paying ￥389 billion (US$3.53 billion) for a controlling stake in Sharp, which on Wednesday last week said that it intends to use ￥8 billion from the infusion to shore up its energy solutions business.
That was the smallest amount planned for its different business segments. About ￥200 billion has been allocated for next-generation screens using organic LEDs.
Sharp is to continue to move ahead with its energy solutions business and to provide after-sale services for solar panels and other energy-related products, Sharp president Kozo Takahashi said in a statement on Monday.
“We will work on strengthening sales of residential solar panels, storage batteries and home energy management systems,” he said.
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese prosecutors suspect that three people successfully smuggled at least one shipment of Nvidia Corp artificial intelligence (AI) chips to China after first exporting them to Japan, people familiar with the matter said. The trio was detained last week by the Keelung District Prosecutors’ Office for allegedly falsifying documents related to exports of Super Micro Computer Inc servers containing advanced Nvidia chips, which the US has barred from sale to China without a license from Washington. The move marked Taiwan’s first public crackdown on AI chip diversion after years of pressure from the US to take a more active role in curtailing
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) employee bonuses are likely to grow more than 30 percent this year, in line with the past few years as the company’s profits continue to set new records, an anonymous source cited TSMC chairman C.C. Wei (魏哲家) as saying yesterday. TSMC, the world’s largest contract chipmaker, is committed to taking care of its workers, the source said, citing Wei’s meeting with employees yesterday morning. Wei also expressed gratitude to employees for their contribution to the company’s improving bottom line, the source added. Since 2023, TSMC’s employee bonuses have grown at an annual rate of
RSS