Sharp's president Tai Jeng-wu on Saturday said confirmed that it is planning to set up a flat-panel plant in the US.

Sharp, a subsidiary of Taiwanese manufacturing giant Hon Hai Precision Industry, will build a plant that will produce small and medium-sized screens for a wide range of applications, Sharp president Tai Jeng-wu said at an exhibition in Taipei. The flat screen production facility will cater not only to smartphone brands, but also to value-added products in the aerospace and defense industries.

Hon Hai chairman Terry Gou visited the White House twice last month and held discussions with US authorities on the possibility of investments there.

Tai on Saturday said that Sharp and Hon Hai are likely to jointly invest about US$7.2 billion in the US market.

Sharp is still evaluating when and where the plant will be built, Tai said.