Backed by Foxconn Electronics, Sharp is likely to increase its investment in Japan-based lens module maker Kantatsu in order to compete with Taiwan-based Largan Precision to secure lens module orders from Apple for iPhone devices, according to a Japan-based Nikkei report.

The speculation came after Sharp's president Tai Jeng-wu delivered recently a letter to its employees saying that Sharp should vertically integrate its camera module business through investments and acquisitions of core equipment and manufacturing partners, Nikkei indicated.

Kantatsu is capable of producing of over 12-megapixel camera modules with a yield rate that is comparable to Largan Precision, said the Chinese-language Liberty Times. Sharp currently holds a 44% stake in Kantatsu.

While Apple currently does not hold any stake in Kantatsu, it did provide the Japan-based lens module maker with a batch of equipment for manufacturing upgrades in early 2016, said the paper.