Foxconn, a well-known supplier for Apple, is looking to broaden its horizons and is reportedly eyeing the purchase of Sharp Corp. and is prepared to shell out $5.3 billion for the acquisition.

The Taiwan-based company – also known as Hon Hai Precision Industry – made the offer to the Japan-based display manufacturer, according to people who are clued in on the goings-on.

"Foxconn, the Taiwanese company that assembles the bulk of the world's iPhones, has offered about ¥625 billion ($5.3 billion) to take over troubled Japanese electronics maker Sharp Corp., according to people familiar with the matter," reports the WSJ.

If the information holds any truth, then Foxconn would be bailing out Sharp Corp., which has been struggling to stay afloat in the face of increasing competition in the display sector.

This is not the first time Foxconn has shown interest in Sharp Corp. In 2012, talks of a collaboration between the two fell through after Sharp felt that Foxconn would have had too much control. However, both the companies jointly operate a plant in Osaka, which produces big LCD panels.

According to the WSJ's sources, even though Foxconn is keen on acquiring Sharp Corp., it will not show much muscle as it intends to retain the top management. This should alleviate the concerns of the Japanese government that a potential overseas takeover is on the anvil.

However, a Reuters reports that government officials have let on that they favor a Japanese buyer as they do not want the company's display technology to go outside Japan.

Moreover, the publication's sources have spilled the beans that Japan-based Innovation Network Corp. of Japan (INCJ) is a prime contender for bailing out Sharp Corp.

This information may hold ground as anonymous sources of publication Bloomberg have divulged that Sharp Corp. is more inclined towards accepting a proposal from INCJ vis-à-vis Foxconn. INCJ is backed by the Japanese government and the deal would enable Sharp Corp. to keep the display technology in Japan itself.

However, no official offer has been made yet and there is no assurance if a conclusive agreement will be reached, as stated by the publication's sources. It is believed that INCJ may shell out $2.6 billion. INCJ already has stakes in Japan Display Inc.

Reuters' sources also reveal that INCJ may merge Sharp Corp's LCD business with that of Japan Display.