Japanese electronics maker Sharp said its new CEO will be Foxconn vice chairman Tai Jeng-wu, as it posted an annual loss of JPY 162 billion ($1.5 billion), partly as a result of slower sales of the iPhone, with Apple being one of its major customers.
The results were the first posted since Foxconn agreed to pay $3.5 billion for a 66 per cent stake in Sharp. The annual loss was for the year ending March 2016, and while it was much worse than JPY48.1 billion in the previous year, it was better than Sharp’s forecast of JPY170 billion.
Tai is a 30-year veteran of Foxconn, and a close aide to the company’s founder Terry Gou, reports Reuters. He also assisted in Foxconn’s negotiations with Sharp.
With his new role, he will be the first “outsider” to be head of the Japanese company and one of nine new board members.
The deal with Foxconn is also the largest overseas investment in a Japanese company.
Sharp’s outgoing CEO Kozo Takahashi said the two firms aim to close the deal by the end of June, much earlier than a previous deadline of October.
Sharp said an “extraordinary board of directors meeting” will be held after payment of the deal is done, to approve Tai’s appointment.