TOKYO - The Japanese electronics maker Sharp said Tuesday that a Taiwanese multinational would become its top shareholder and help it produce televisions as part of a capital tie-up intended to bolster Japan's waning technological prowess. Hon Hai Precision Industry, the electronics giant better known as Foxconn, will take a stake of about 11 percent in Sharp, giving the Japanese manufacturer a much-needed capital injection as well as access to Hon Hai's extensive manufacturing capabilities. Sharp will issue ¥66.5 billion, or $800 million, worth of new shares to Hon Hai, and will also sell a 46.48 percent stake in a flat-panel television factory in western Japan where the companies will produce televisions together, the two companies announced in Tokyo. Hon Hai, one of the largest electronics manufacturers in the world, also supplies Apple. The alliance is a bold one in the world of Japanese manufacturing, where companies have long tried to make their devices themselves, a model known as vertical integration, as opposed to companies like Apple, which outsources most its manufacturing. But doing everything in-house has reached its limit, as high costs in Japan strangle profitability, said the incoming chief executive of Sharp, Takashi Okuda. "Sharp can no longer handle everything on its own, from R&D to design, production, procurement, sales and services," said Mr. Okuda, who is set to take the helm on April 1. In the competitive global market, Sharp's vertically integrated model has reached its limit. Mr. Okuda said Sharp would use the proceeds from the share issue to Hon Hai to invest in new liquid crystal display technology, as well as LCD panels for mobile devices, where it expects robust demand. The companies also plan to jointly develop and produce a wide range of gadgets, including smartphones, Mr. Okuda said. Once leaders in televisions, Japanese companies led by Sony, Panasonic and Sharp have been battered by competition from lower-cost rivals like Samsung Electronics and LG of South Korea. Sharp has projected a record net loss of ¥290 billion for the year through March, hurt by a glut of liquid crystal display panels worldwide, and a punishingly strong yen. Sharp's woes have been exacerbated by a ¥1 trillion bet it made on a state-of-the-art television factory in Sakai, near the western hub of Osaka, in 2009. That investment weighed heavily on Sharp's finances as demand for large panels slumped and inventory piled up. The tie-up between Sharp and Hon Hai underscores the changing roles and fortunes of Japan and China in manufacturing. Japan, once a global manufacturing powerhouse, is now looking to its fast-growing neighbor for help. It remains unclear whether Sharp can rebuild a business to compete with the manufacturing muscle of the likes of Samsung, or the innovation of Silicon Valley companies like Apple. But a recognition that it must outsource, or even exit, commoditized products could be a step toward improving profitability. For Hon Hai, which supplies Apple and other leading consumer electronics companies, the deal with Sharp further acknowledges its dominance in global manufacturing. "Sharp is one of the most recognized brands worldwide and is also the leader in R&D," said the Hon Hai chairman, Terry Gou, speaking in a video message that was played to reporters in Tokyo. Hon Hai, well, it's not a brand, but has an excellent manufacturing record. "This is truly a winning alliance," Mr. Gou said.