Published On : 07/06/2023

Foxconn chairman holds talks with Sharp employees in Japan after profit slump

TAIPEI (Reuters) -Foxconn Chairman Liu Young-way held talks with senior and mid-level employees at Japan’s Sharp this week and discussed topics including the relationship between the two companies, the Japanese electronics maker said Thursday.

Foxconn, the world’s largest contract electronics maker, reported a 56% plunge in first-quarter net profit, due to a T$17.3 billion ($553 million) writedown related to its 34% stake in Japanese electronics maker Sharp.

During the meetings, which were attended by more than 100 employees, Liu talked about issues including the companies’ relationship, Sharp’s global positioning and the future of the Japanese company, Sharp said in a statement.

“I hope we will overcome this difficult phase and win back glory by bringing together our wisdom, speeding things up and boosting trust within and outside the company,” Liu was quoted as telling Sharp employees.

“I would like to think about ways to create synergy through Hon Hai’s support.”

Foxconn was formally called Hon Hai Precision Industry.

Sharp reported in May a full-year loss of $1.9 billion after writing down the value of its panel display business and a swathe of other assets.

Following the Japanese company’s first net loss in six years, Liu said he would work harder on the management of Sharp but did not offer details.

($1 = 31.2680 Taiwan dollars)

(Reporting By Yimou Lee in Taipei, Kiyoshi Takenaka in Tokyo; Editing by Anne Marie Roantree, Himani Sarkar, Tom Hogue and Kim Coghill)

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