Taiwanese outfit Hon Hai has conducted a deal with Sharp, which sees it gain a 9.9 percent stake in the loss-making Japanese electronics company for 67 billion Yen (around $800 million).

Hon Hai, and its founder Terry Gou, invested a further 66 billion Yen buying a 46.5 percent stake in Sharp Display Products, an LCD manufacturing plant set up by Sharp and Sony.

Reuters has speculated that these are strategic moves designed to better position Hon Hai - which is the parent company of Chinese manufacturer Foxconn - in terms of gaining orders to manufacture the much rumoured Apple TV.

Foxconn already assembles iPads and iPhones for Apple, while Sharp is another of Apple's suppliers and - unlike companies such as Samsung - not a direct competitor.

Throw of the dice

It's not without risk, however, since there's no guarantee Hon Hai or Sharp will secure orders from Apple, and Sharp's expertise is with LCDs; little use if Apple decides to use AMOLED technology.

The deal could also sour relationships with other customers.

In the wake of this deal, Sony has said it won't make any further investment in the Sharp Display Products plant, in which it's a part owner.

[source: Reuters and BBC News]