Foxconn Technology Group and its subsidiary Innolux will buy stakes in Vizio, the U.S. based television brand as the group’s strategy to expand market in North America.

The two companies will invest US$70 million to acquire a 7.2% stake in Vizio with stock price US$48.52 per share. Foxconn takes 3.1% share for US$24.99 million and Innolux 4.14% for US$44.99 million. According to Innolux’s new appointed CEO, Jin-Yang Hung, the investment will establish stable shipments from Innolux to Vizio. According to market researcher WitsView, Vizio shipped 5.65 million TVs in 2017 and take 2.7% global market share.

Zhi-Chao Wang, Former CEO of Innolux, as well as a key figure for panel business in Foxconn group indicated that though Taiwanese penal makers have been gaining profit in the past six seasons; the increasing capacities of Chinese panel firms and the varied price might hit the market from the second half of 2018 as oversupply is estimated. Therefore, it is crucial for penal manufacturers from Taiwan to move forward, or they will struggle in the competition.

Resigned from the CEO of Innolux, Wang will take in charge to integrate the resource from Innolux and Sharp for Foxconn Group. With the technologies from Sharp and the manufacturing capability from Innolux, Wang considered the integration critical to compete with the collaboration between Chinese panel maker BOE and Samsung.

(Image: TechNews)