Following a March agreement that saw Foxconn and Sharp entering into a partnership to advance LCD technology, Reuters reports on a new article from Japan's Nikkei business newspaper indicating that the two companies are specifically teaming up on a new plant in Chengdu, China to produce displays for the iPhone.
Japan's Sharp Corp will supply technological know-how to Taiwan's Hon Hai Precision Industry Co for a plant in China that will produce panels for Apple Inc's iPhone and other consumer electronics products, the Nikkei business daily said on Thursday. [...]
The Nikkei said that the new technology handover, for which Sharp will receive tens of billions of yen in fees, is aimed at improving quality management at Hon Hai's planned plant in Chengdu.
Apple has been working hard to continue streamlining its supply chain, and closer partnerships between component suppliers such as Sharp and device assemblers like Foxconn will likely help Apple move more quickly and efficiently to the latest technologies for its products.
Sharp was reportedly behind the main force in development of the third-generation iPad's Retina display technology, but quality control issues led to the company being shut out of the initial batch of devices as it sought to bring its production up to Apple's standards. The company has reportedly begun shipping its displays for the new iPad, joining Samsung and LG in efforts to meet Apple's demand.
