Foxconn Technology Co., Ltd. (TPE:2354) may be Sharp Corporation (PINK:SHCAY)’s chance to survive the economic downturn. While Sharp Corporation (PINK:SHCAY)  is a leading provider of components to Apple Inc. (NASDAQ:AAPL), their other areas of revenue seem to have collapsed. Sharp Corporation (PINK:SHCAY)’s shares have settled to their lowest point in 37 years in Tokyo, and even its bonds fell when the maker of Aquos TVs predicted a $3.2 billion loss, which is larger than the company’s market valuation.

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This gigantic drop in share price caused Terry Gou, the founder of Foxconn Technology Co., Ltd.(TPE:2354), to offer a lower price for his nearly 10% of Sharp Corporation (PINK:SHCAY)’s shares, and still continue the purchase deal. Gou knows a stake in Sharp Corporation (PINK:SHCAY)will assure him access to Apple Inc. (NASDAQ:AAPL), which is a gold mine waiting to be excavated.

Newsday reports that Alberto Moel, who is an analyst as Sanford C. Bernstein in Hong Kong, says “Apple Inc. (NASDAQ:AAPL) needs Sharp. Sharps capacity is large enough, that if it were taken offline, it could hurt Apple Inc. (NASDAQ:AAPL).”

Tim Cook, CEO of Apple, has hinted to the advent of the Apple TV, and Foxconn wants a piece of this all American pie. Gene Munster of Piper Jaffray has said that a TV has been a source of “intense focus” for Apple Inc. (NASDAQ:AAPL).

So now the question which begs to be answered is this: If Apple needs Sharp, can Foxconn Technology Co., Ltd.(TPE:2354) save it, and make it strong enough to compete with Samsung Electronics Co., Ltd. (LON:BC94)? Gou thinks that an alliance with Sharp would strengthen both Foxconn Technology Co., Ltd.(TPE:2354) and Sharp. He believes that it will give them a better opportunity to be competitive with the technology giant.

While some investors question Foxconn Technology Co., Ltd. (TPE:2354)’s resolve to go through with the deal, others look for a brighter future. Some analysts say that Sharp is a losing proposition and that this could cost Foxconn Technology Co., Ltd.(TPE:2354) in the long run. On the other side of the fence, many believe that Sharp has the potential to do more than just the standard electronics, and could open new sources of revenue for both companies.

Will this deal be good forFoxconn Technology Co., Ltd.(TPE:2354) or Sharp? We will have to wait and see. Sharp closed the day in NY today after dropping 8.59%.