Japanese Electronics Company Accepts Taiwanese Rival’s Offer

March 26, 2016

Unlocking Word Meanings

Read the following words/expressions found in today’s article. 

1. contender / kənˈtɛndɚ / (n.) – someone who fights to win something
Example: The item went to the contender with the highest bid.

2. procure / proʊˈkyʊər / (v.) – to get something by exerting effort
Example: The film company procured the rights to the book with their impressive presentation.

3. avidly / ˈæv ɪd li / (adv.) – with great enthusiasm or eagerness
Example: The company avidly fought to win the investor’s favor.

4. merger / ˈmɚʤɚ / (n.) – the act of joining two businesses into one
Example: The former rival malls became stronger after their merger.

5. incur / ɪnˈkɜr / (v.) – to have or experience something, usually negative
Example: The failed investments caused the company to incur losses and huge debts.


Read the text below.
Taiwanese electronics company Foxconn has proven that they are ahead of other contenders in the battle for the takeover of Sharp after the Japanese electronics company accepted their offer.

After a two-day meeting which ended on February 25 in Sharp’s headquarters, Sharp accepted Foxconn’s offer. Under the merger, the Taiwanese company will own 66% of Sharp’s shares for more than ¥400 billion, or around $4 billion, and consequently procure the rights to Sharp’s advanced technology. However, the latter has postponed signing the agreement for the meantime until all details have been ironed out.

Foxconn, formally known as Hon Hai Precision Industry Co., manufactures electronic devices for major brands like Apple Inc., Sony Corp., and Microsoft. They hope to acquire Sharp’s technology to improve the global competitiveness of their products.

Meanwhile, government-funded Innovation Network Corporation of Japan (INCJ) has avidly contended against Foxconn in hopes of keeping Sharp’s technology under local management. They offered a ¥300 billion capital, aside from other forms of assistance which altogether amounts to ¥1 trillion.

Sharp urgently needs the merger after incurring huge losses in profit in recent years. They reported a net loss of ¥108 billion for April-December 2015. The decline is due to the drop in flat-screen TV demands in foreign markets following the global financial crisis. In addition, Sharp is having trouble keeping up with competitors from other countries like China and South Korea, who sell similar products for much cheaper prices.  

Viewpoint Discussion

Enjoy a discussion with your tutor.  

Discussion A

·         If you were given the chance to decide, would you like Sharp to be procured by a foreign investor or a government-owned company? Explain your decision.
·         What do you think would be the possible advantages of Sharp’s merger to a foreign company?

Discussion B
·         In your opinion, what can a huge company do to avoid incurring huge debts and loss in profit? Give examples.
·         Are people obliged to support the local manufacturers in their country? Why or why not?

March 26, 2016