Intel, Qualcomm may invest $378M in Sharp

Intel, Qualcomm may invest $378M in Sharp

Summary: Ailing Japanese electronics giant said to be in talks to receive a joint investment from both chipmakers, although details remain unknown.

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Japanese consumer electronics company Sharp is reportedly in talks with chip manufacturers Intel and Qualcomm to receive a joint investment of 30 billion yen (US$378 million).

According to Reuters Wednesday, the three parties are locked in talks about the fund injection but details of the negotiations are unknown, two unnamed sources revealed.

Sharp may reach an agreement as early as the end of November with Qualcomm, one of the sources added. The talks with Intel are less firm due to the chipmaker's unclear financial picture, it added.

A Sharp spokesperson told Reuters no decisions have been made about accepting investments from other companies. Meanwhile, both Qualcomm and Intel spokespeople told ZDNet Asia it will not comment on rumors or speculation.

For months, Osaka-based Sharp has also been in talks with Taiwan's Hon Hai Precision Industry, who is considering becoming the ailing Japanese company's biggest shareholder, as a potential benefactor to rescue the business.

Sharp had doubled its full-year net loss forecast to 450 billion yen (US$5.7 billion) earlier this month, after the company registered a US$1.1 billion restructuring charge for the second quarter ending Sep. 30, 2012.

It also issued a statement saying the performance "raises serious doubts" about the company's ability to continue operations despite cutting pay, laying off staff and selling its assets

 

Topics: Hardware, Tech Industry

Ellyne Phneah

About Ellyne Phneah

Elly grew up on the adrenaline of crime fiction and it spurred her interest in cybercrime, privacy and the terror on the dark side of IT. At ZDNet Asia, she has made it her mission to warn readers of upcoming security threats, while also covering other tech issues.

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