Sharp Corp. (http://sharp-world.com/) has entered into agreement with the Hon Hai group, an EMS (electronic manufacturing service) company, to establish strategic global partnership to collaborate in various business field. Hon Hai is the parent company of Foxconn, which makes iPads and iPhones for Apple.

According to a Sharp press release, Hon Hai Precision Industry, the key company of Hon Hai group, saw Sharp's LCD technology with high reputation, and decided to procure ultimately up to 50% of large-size LCD panels and LCD modules manufactured at the LCD panel plant in Sakai-city, Osaka, Japan. The LCD panel plant will be mutually managed by one company set by partner companies.

In addition, this partnership allows each company to establish a new business model, combining each company's strength, to launch cost competitive component and products fit to market demand by utilizing Sharp's potential for the development of one-of-a-kind components and products with Hon Hai group's mounting technology and cost competitiveness, according to the press release.

Sharp -- which is reportedly behind the Retina display in the new iPad -- says it plans to enhance this partnership by broadening the collaboration field, to allocate funds received from Hon Hai group by the issuance of new shares through third-party allotment, to the investment for the new technology introduction, to increase mid-and long- term profitability, and to strengthen competitive edge in the global market.