Taiwanese company Foxconn completed its acquisition of Japanese electronics manufacturer Sharp yesterday, signing a US$3.5 billion deal that will give them control of 66 percent of the company.

Foxconn, also known as Hon Hai, made history as the first Taiwanese company to acquire a large Japanese business.

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As the manufacturer that assembles Apple's iPhones and iPads, Foxconn will provide a financial lift to Sharp, which has been struggling recently. The Japanese company lost US$10 billion over the last five years and had to rely on two bailouts from banks.

Foxconn CEO Terry Gou is cautiously optimistic.

"I'm not going to sugar-coat the challenges, but I have a clear roadmap in my heart," he said at a press conference held in Osaka, Japan.

He added that his vision for Sharp would require "very hard" work.

Despite Sharp's financial struggles, the company remains a technological leader.

Foxconn appears especially interested in Sharp's development of indium gallium zinc oxide (IGZO) display technology. Android Headlines predicted that the Taiwanese company will lead Sharp to integrate IGZO technology with organic light emitting diode (OLED) displays.

According to Reuters, Apple has plans to use OLED screens on iPhones, and part of the deal between Foxconn and Sharp includes US$1.79 billion specifically for mass-producing the display technology.

However, Android Headlines reported that the company will not begin shipping OLED smartphone screens until 2018, with larger screens for notebooks and tablets following in 2021.

Gou also plans to combine Sharp's technological prowess with Foxconn's manufacturing ability to become a major factor in the Internet of Things industry, applying smart technology to appliances and other products.

As for the logistics of the merger, Gou indicated that he would like to keep all Sharp employees. However, Foxconn terminates 3-5 percent of its employees each year. 

TagsFoxconn, Sharp Corporation, Taiwan, Japan, OLED, Apple Inc., iPhone, IGZO