Hon Hai buys NEC's flat panel patents for $122M

The deal is expected to be completed by December this year, and will boost the Taiwanese company's portfolio of flat panel patents and R&D capabilities in this area.

Hon Hai Precision Industry, also known as Foxconn, has acquired patents related to flat panel production from Japanese electronics company NEC.

Central News Agency (CNA) reported Saturday the company issued an announcement on the Taiwan Stock Exchange saying its subsidiary, Gold Charm, will acquire the patents for 9.45 billion yen (US$122 million). Tthe deal will be completed by Dec. 28 this year, it added.

Hon Hai said the acquisition will boost its current portfolio of flat panel patents and research and development (R&D) capabilities in the area.

No further details about the deal were disclosed, but analysts Central News Agency spoke to said the Taiwanese electronics manufacturer was eyeing NEC's touch panel technology. Hon Hai Chairman Terry Gou met with NEC President Nobuhiro Endo last August, when he agreed to buy the Japanese company's patents for liquid crystal display, it added.

Gou had also acquired a 46.5 percent stake in an advanced flat screen product plant from Sharp as part of an agreement in March to buy a 10 percent stake in the Japanese company.