OSAKA (Nikkei)--Sharp Corp. (6753.TO) and Qualcomm Inc. of the
U.S. have reached an agreement to jointly develop an
energy-efficient LCD panel for smartphones using the Japanese
firm's proprietary technology, The Nikkei reported in its Tuesday
morning edition.
Under the deal, Sharp will provide the major U.S. chipmaker its
IGZO (indium-gallium-zinc oxide) technology, which greatly reduces
a panel's power use. The full details are expected to be announced
as early as Tuesday.
In exchange for the technology, Sharp will receive by the end of
this year a Y5 billion investment from the U.S. firm through a
private placement of new shares. Qualcomm will pour an additional
Y5 billion or so into Sharp once sufficient progress has been
made.
Based on Sharp stock's Monday closing price, a Y10 billion
investment will give Qualcomm a roughly 5% stake.
Sharp is bracing for its second consecutive annual net loss of
more than Y300 billion for the year ending in March. With its
capital ratio standing at a low 9.9% as of the end of September,
shoring up its capital is a high priority.
The company announced in March that it had agreed to receive an
investment from Taiwan's Hon Hai Precision Industry Co., but their
negotiations have since bogged down as Sharp's stock nosedived.
By teaming up with Qualcomm and racing ahead in the development
of next-generation panels, Sharp aims to further bolster its LCD
panel business. It ranked second globally for small- and midsize
LCD panels used in smartphones and tablet devices, with a market
share of roughly 16%.
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