Hon Hai Precision Industry Co. and Japan’s Sharp Corporation jointly announced a significant intangible assets transaction today. Hon Hai’s wholly-owned subsidiary, FG Innovation IP Co. Ltd., sold a portfolio of 4G/5G Standard Essential Patents (SEPs) and other telecommunications patents to Sharp for US$24 million (approximately NT$780 million). This strategic move aims to optimize both companies’ operational resources and improve profit margins.
Hon Hai explained that the sale of its subsidiary’s patents is part of a broader strategy to activate assets and capitalize on technology research and development achievements. The company emphasized that this transaction reflects its commitment to efficient asset management and innovation.
Sharp, in its announcement, highlighted that the acquisition of these patents will significantly bolster its operational resources, particularly in enhancing revenue streams through intellectual property and reducing operating costs. With over 6,000 key patents in more than 50 countries, Sharp has a robust portfolio in wireless communication technologies, including W-CDMA, LTE, LTE-Advanced, and 5G. This acquisition will further strengthen Sharp’s competitive edge in the industry.
Additionally, the transaction aligns with Sharp’s strategy to leverage patents as crucial tools for market creation and business advantage. The enhanced intellectual property portfolio is expected to accelerate Sharp’s capabilities in wireless communication and internet-related technologies.
In a related development, Sharp announced on June 27 the appointment of Hon Hai Chairman Liu Yangwei as its president, aiming to deepen the mid- to long-term cooperation between the two companies. This leadership change is anticipated to expedite Sharp’s transformation, integrating Hon Hai’s strategic focus on AI and smart technology across various sectors, including consumer electronics and automotive.
Both companies believe that these strategic moves will fortify Sharp’s market position and operational efficiency, creating new opportunities for innovation and growth under the trusted “Japan Sharp” brand.
