Qualcomm to give $60 million to Sharp by June 24

Qualcomm to give $60 million to Sharp by June 24

Summary: Qualcomm is set to hand over the remainder of a $120 million investment in the ailing electronics firm by the end of the month.

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Six months after Qualcomm announced plans to invest $120 million in ailing electronics firm Sharp, the company has confirmed (.PDF) the remaining half of its investment to be transferred by June 24.

The electronics maker estimates that Qualcomm's investment will be spent on general costs and acquiring equipment in establishing MEMs technology product lines.

The Japanese firm was originally due to receive the remaining $60 million in March, but Sharp failed to meet a number of conditions for the deal to go ahead.

Qualcomm has invested in Sharp in order to produce a range of screens combining Qualcomm-subsidiary Pixtronix's low-power MEMS (Micro Electro Mechanical Systems) displays and Sharp's IGZO (Indium Gallium Zinc Oxide) technology. These screens are meant to conserve power and be produced in a range of sizes and shapes for different devices.

In return for the investment, Qualcomm and Pixtronix will receive 11,868,000 shares (a total stake of 3.53 percent), making the U.S. chipmaker Sharp's third-largest shareholder.

"Expanding our existing relationship with Sharp to jointly commercialize new MEMS display technologies will help both companies realize their shared goal of driving high performance and lower power displays for a variety of devices, including smartphones and tablets," said Derek Aberle, executive vice president and group president of Qualcomm.

After an investment deal worth $806 million with Foxconn fell through, South Korean electronics giant Samsung paid 10.4bn yen ($112m) for a three percent stake in Sharp.

Topic: Tech Industry

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