Taiwan's Hon Hai has raised a proposal to completely acquire Sharp's LCD business for up to JPY200 billion, which is about USD1.66 billion.

According to reports in Japanese local media, due to limited cash reserves, Hon Hai hopes Apple can participate in the acquisition, which means Hon Hai will hold the majority stake in Sharp's LCD business if the transaction is completed.

Once the transaction is completed, Hon Hai will gain Japan's leading LCD technology and this Taiwanese company will become a true parts research and development and manufacturing company.

During 2014 financial year, Sharp's LCD business achieved combined sales of JPY907.1 billion, which was about USD7.5 billion and its operating profit was JPY30.1 billion. However, the company saw operating losses of JPY13.7 billion from April to June 2015.

In addition, this transaction reportedly allows Sharp to keep its Japanese employees.