Intel, Qualcomm reportedly considering investment in Sharp
14th Nov 2012 | 21:36
To the rescue?
Two chip making rivals are reportedly considering a joint investment worth $378 million (UK£238, AUD$363) into struggling consumer electronics company Sharp, according to a new report.
Citing two sources familiar with the situation, Reuters revealed the potential revival deal between Intel and Qualcomm Wednesday.
Sharp displays are found in iPads and iPhones and the company appears anxious to tap into the small screen and high-end laptop market as a way to resurrect its fortunes. Intel is apparently interested in Sharp's energy-efficient IGZO displays as it looks to profit in the growing Ultrabook scene.
A deal between Sharp and Qualcomm may come as soon as the end of November, one of Reuters' sources said. Details of an Intel deal are less firm as the company has its own murky financials to contend with.
Sharp's situation is no secret - various reports have it cutting its workforce by almost 11,000 in two years, selling off assets and contending with $13.8 billion (UK£8.71, AUD$13.2) in debt.
Over the course of 2012, Sharp has seen three-quarters of its value whither away. Its total lose for the year could reach $5.7 billion (UK£3.59, AUD$5.4), including a $1.1 billion (UK£6.94m, AUD$1.05) restructuring charge.
An investment by Intel or Qualcomm, or both, could lay out an entirely new future for Sharp, one that steers it completely away from TV land and wholly towards mobile technology.