Foxconn to build new plant for iPhone screens with Sharp's help

Sharp and Hon Hai Precision, parent company of Foxconn, are partnering to improve the LCD manufacturing process for the iPhone. A report by Reuters points to Nikkei business daily report that says Sharp is helping Foxconn outfit a new Chengdu plant with the latest LCD manufacturing technology. Foxconn will use Sharp's know-how to improve its iPhone display manufacturing process. In return, Hon Hai, parent company of Foxconn, will buy an 11 percent stake in Sharp that's worth 66.9 billion yen (US$844 million as of this writing).

This agreement follows an earlier deal that gave Hon Hai a 46.48 percent stake in a Sharp's most advanced LCD display plant in Sakai, Western Japan.