Foxconn misses a Sharp investment deadline

Taiwanese consumer electronics assembly giant Hon Hai Precision Industry Co, better known by its trading name Foxconn, has missed a key deadline for investing in troubled Japanese electronics firm Sharp.

According to Reuters, Hon Hai has been in talks with leading Japanese banks, including Mizuho Financial Group and Mitsubishi UFJ Financial Group, which had been involved in bailing out Sharp.

The potential has an added urgency as Sharp needs to find $US2.1 billion to cover a convertible bond due in September.

Hon Hai had sought to buy up to 9.9% of the troubled electronics maker, making it the largest single shareholder, although negotiations have slowed as a result of the $US708 million price tag for the investment.

The banks are also in negotiations with other parties, including chip design firm Qualcomm and Korean electronics giant Samsung.

Hon Hai is best known for its work in assembling consumer electronics products outsourced by a number of leading manufacturers, including Apple, Amazon, Google, Microsoft, Hewlett-Packard, Dell and Sony.

It has come under fire in recent years over conditions at its factories in China.