AP News

Hon Hai to buy panel patents from Japan's NEC

TAIPEI, Taiwan (AP) —

The head of Hon Hai Precision Industry Co. says the Taiwan electronics manufacturer will buy key LCD panel patents from Japan's NEC Corp.

Terry Gou said in Tokyo late Tuesday that the deal will be signed soon, but did not give details.

Hon Hai owns the Foxconn factories in China and is a key producer of iPads and iPhones for Apple Inc.

Gou has sought tie-ups with Japanese firms to jointly combat growing competition from South Korea.

Hon Hai and the struggling Sharp Corp. signed in March an $806 million deal to form an alliance in LCD displays to cut costs.

Hon Hai is to buy a 9.9 percent stake from Sharp. But the Japanese maker's shares have since plunged sharply, compelling the two to renegotiate a price.

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