Foxconn is the world's largest electronics foundry, with numerous component businesses, while Samsung Electronics is the world's largest consumer electronics company. As we all know, Samsung Electronics, which has all-encompassing businesses, is the "common enemy" of Foxconn Group and many Taiwanese electronics companies.

According to Nikkei News on Thursday, Samsung Electronics previously held a partial stake in Japan's Sharp, but it has sold this stake after Foxconn fully took over Sharp.

Previously, Foxconn Group spent US$3.5 billion to acquire a controlling stake in Sharp. Currently, Foxconn's second-in-command Dai Zhengwu has served as Sharp's president. Terry Gou and Foxconn are re-adjusting, evaluating and restructuring Sharp's business in preparation for Sharp's comeback.

According to reports, Samsung Electronics previously held a 0.7% stake in Sharp through a Japanese subsidiary, equivalent to 35.8 million shares. Based on Sharp's closing price on Wednesday, Samsung's shareholding in Sharp is worth 4.6 billion yen, equivalent to US$45 million. Samsung has now sold off these shares.

Sharp is globally recognized as the father of LCD, while Samsung Electronics is the world's largest TV manufacturer. Samsung and Sharp have always had a relationship of cooperation and competition. In 2012, Sharp's operations fell into huge difficulties and almost stood on the edge of bankruptcy.

In 2013, Samsung Electronics extended a helping hand to Sharp. Announced an investment of 10.3 billion yen in Sharp, acquiring approximately 3% of Sharp’s equity. Samsung also became Sharp's fifth largest shareholder. Through this equity cooperation, Samsung Electronics can also obtain a stable supply of Sharp's future LCD TV panels.

But later, for some unknown reason, Samsung reduced its stake in Sharp.

In fact, Samsung Electronics is also reorganizing its own business and divesting non-core assets. The transfer of Sharp's equity may also be part of this plan. Just this Monday, Samsung transferred its printer business, which was considered a sunset market, to Hewlett-Packard of the United States for US$1.05 billion.

Samsung Electronics is currently the largest manufacturer of OLED screens for mobile phones in the world. An important purpose of Foxconn Group's acquisition of Sharp is to produce OLED panels that Apple will need in the future. Therefore, there will be fierce competition between Samsung and Sharp in the future.

However, when it comes to Samsung’s TV business, it is still the largest customer of Sharp’s LCD panel business. If Samsung is satisfied with the purchase price, cooperation between the two parties will continue in the future. However, if Samsung reduces its purchase of Sharp panels in the future, it will affect Sharp's reorganization plan.

It is worth mentioning that in the Foxconn acquisition of Sharp, Sharp's shareholder structure also underwent dramatic changes, and Foxconn also acquired shares from Sharp's existing shareholders.

In Taiwan's technology industry, Samsung Electronics is regarded as a "common enemy" because Samsung Electronics' business scope is too broad and it has become competitors with Taiwanese companies in many fields, including LCD panels, semiconductor foundry, etc.

Nikkei News pointed out that Foxconn Group hopes that the technology industries of Japan and Taiwan can form a strategic alliance to jointly deal with Korean companies such as Samsung and LG.

When Samsung Electronics invested in Sharp in 2013, Samsung also proposed to acquire Sharp's valuable copier business, but Sharp rejected it.

In addition, at the beginning of this year, Nikkei quoted sources as saying that during the negotiation process for Sharp's external transfer (with Foxconn Group and Japan Industrial Innovation Organization respectively), Samsung Electronics also considered acquiring Sharp. Samsung Electronics successor Lee Jae-yong once said that he would fully support Japan's Sharp. In addition, even if it does not acquire the entire Sharp company, Samsung also hopes to buy the most valuable LCD panel assets.

Of course, in the quite strong acquisition negotiations between Terry Gou and Foxconn, Samsung Electronics did not buy any assets of Sharp.