Anonymous sources said that the two companies are fighting to reach a deal earlier this week.
"Nikkei business daily" first reported Sharpe's return to the personal computer market, which is rare among Japanese electronics manufacturers. In the face of fierce price competition from Asian competitors, many Japanese electronics products are manufactured. Businesses have withdrawn from smart phones, personal computers and televisions.
Sharp, who withdrew from the personal computer business in 2010, plans to use the huge Foxconn procurement network. Foxconn is the world’s largest OEM manufacturer and Apple’s major supplier. Foxconn also assembles personal computers for other global brands.
Toshiba’s personal computer business had sales of 167.3 billion yen in the fiscal year ending in March and a loss of 9.6 billion yen.
In order to make up for the multi-billion-dollar loss caused by its US nuclear power business, Westinghouse Electric, Toshiba, in financial difficulties, has sold its television business to Hisense Group and sold its white goods business to Midea Group.
Toshiba said in a statement that the company is considering selling its PC business and is negotiating with potential buyers, but there is no specific decision yet. Sharp declined to comment on the news.