Sharp Corporation (Tokyo Stock Exchange: 6753, hereinafter “Sharp”) has announced that it will sell its semiconductor business to HonYuan International Investments Co., Ltd., a subsidiary of HON HAI Precision Ind. Co., Ltd. (Taiwan Stock Exchange: 2317, hereinafter “HON HAI Precision Ind.”). Through this transaction, Sharp will withdraw from the semiconductor business and shift its focus to other core operations.
Purpose of M&A
Sharp has been facing challenges such as intensifying competition and declining profitability in its semiconductor business and is now undergoing business restructuring. Through this partnership with HON HAI Precision Ind., Sharp aims to enhance the efficiency and capabilities of the semiconductor business while reallocating management resources toward other growth areas.
HON HAI Precision Ind. is the world's largest electronics manufacturing services (EMS) company and is also known as a key manufacturing partner of Apple. By acquiring Sharp’s semiconductor business, HON HAI aims to bolster its manufacturing capabilities and enhance its competitiveness in the semiconductor sector.
With this divestiture, Sharp plans to strengthen its investments in growing fields such as AI, IoT, and 5G, and promote business diversification. Meanwhile, HON HAI Precision Ind. seeks to further improve its global competitiveness through the expansion of its semiconductor operations.
Acquisition Terms
Transfer Price per Share: ¥12,916,667
Number of Shares to be Transferred: 100% of issued shares (1,200 shares)
Total Transfer Amount: ¥15.5 billion
Schedule
Absorption-type Company Split Agreement Date: April 23, 2025
Effective Date of Company Split: July 1, 2025 (planned)
Share Transfer Agreement Date: April 23, 2025
Execution Date of Share Transfer: September 29, 2025 (planned)
