Chipmaker Qualcomm to buy 5 per cent of Japan's Sharp: Reports
TOKYO (AFP) - Chipmaker Qualcomm is set to buy about five per cent of Sharp, reports said on Tuesday, as the cash-strapped Japanese electronics giant looks for a capital injection to repair its balance sheet.
The 10 billion yen (S$148 million) investment by United States-based Qualcomm comes as Sharp, mired in heavy losses, has also reportedly been talking with other US technology giants, including Intel and Dell, about a possible investment.
The Qualcomm deal would see the pair jointly develop energy-efficient liquid crystal display panels for smartphones using the Japanese firm's technology, with the US company getting new Sharp shares equal to about five percent of its current market value, Jiji Press news agency reported.
The agreement calls for Qualcomm to invest about 5.0 billion yen in Sharp by the end of the year, with the other half invested as the joint venture progresses, the leading Nikkei business daily said.