Sharp mortgages iPhone screen factory, Japanese plants and offices

The consumer electronics maker has mortgaged a number of its factories, including one that's said to be making screens for Apple's new iPhone.

Sharp TV
Sharp

Electronics maker Sharp has mortgaged almost all of its domestic offices and factories in order to stay in business.

The properties were offered as collateral for up to 150 billion yen ($1.92 billion) of credit from Mizuho Financial Group and Mitsubishi UFJ Financial Group, according to Reuters.

Company spokeswoman Miyuki Nakayama told Reuters the offering includes "almost all the business sites owned by Sharp in Japan."

Sharp operates 11 factories in Japan that make products including display screens, TVs and solar panels. The Kameyama plant in western Japan manufactures screens for Apple and is thought to have begun shipping screens for Apple's next iPhone, likely to be revealed on September 12 .

Recent reports suggested that the electronics maker was experiencing difficulties producing screens for the forthcoming device due to rising costs and manufacturing problems.

Sharp is currently in talks with Hon Hai Precision Industry over plans for the company to buy a 9.9 percent stake in Sharp, giving it a much-needed cash boost, according to Reuters.

 

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