Hon Hai is in talks to acquire a majority stake in Hitachi’s flat-panel display business in a deal worth $1.2bn, say people familiar with the negotiations.
The acquisition would take the Taiwanese group to the top tier of producers of small and medium-sized liquid crystal display panels with an equal or slightly bigger market share than Sharp, the current leader.
Hon Hai is already the biggest contract electronics maker but the move could see it produce screens for mobile devices and tablets in Japan, and bolster its ability to make advanced components for smartphones and computers such as Apple’s iPhone and iPad. It is the largest maker of Apple devices but faces increasing competition for the assembly contracts.
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