Following Foxconn's USD3.5 billion acquisition of Sharp, the Taiwanese company will position the new executive team in July to accelerate commercial application of Sharp patents, but it will also reportedly close Sharp's redundant and inefficient overseas businesses and cut 7,000 employees.

Terry Gou, founder and chairman of Foxconn, said at the company's annual general meeting that he plans to promote the commercial application of Sharp's patents to transform non-profitable businesses into profitable businesses. He said Sharp has many technologies, but they did not apply them yet to products in the market. However, Foxconn is good at turning patents into technologies and turning technologies into products.

Gou said Foxconn will complete related legal procedures of the Sharp acquisition before the end of June 2016. Starting from July, the new management team will take over and the company will purge 7,000 employees. Foxconn will close some of Sharp's redundant and inefficient overseas businesses, including certain sales joint ventures. Gou pointed out that Sharp has too many affiliates, which leads to high daily spending.

Foxconn signed the official agreement to acquire Sharp in April 2016. Under the agreement, Foxconn will acquire a 66% stake in Sharp for about USD3.5 billion, making it the largest shareholder of the Japanese company.

During the latest financial year ended March 2016, Sharp made net losses of USD2.46 billion.