Sharp to receive remainder of Qualcomm investment by June

Sharp to receive remainder of Qualcomm investment by June

Summary: The U.S. chip maker is set to become Sharp's biggest shareholder as early as June this year.

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TOPICS: Tech Industry
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According to reports, Sharp will receive the remainder of a $120 million investment by Qualcomm in June.

Sharp said that by June 28, the television set maker will be granted the second half of Qualcomm's investment. The investment pact was in jeopardy after the Japanese firm missed the March 29 deadline set by the U.S. chip maker to receive the second half of the $120 million investment, as Sharp experienced delays in fabricating power-conserving screens made jointly by the two companies.

Developed in conjunction with Qualcomm-subsidiary Pixtronix, Sharp's new screens are means to conserve power through the use of Pixtronix's MEMS (micro electromechanical systems) displays and Sharp's IGZO (indium gallium zinc oxide) technology.

The partnership project was announced in December. Once the investment is complete, Qualcomm will be the Japanese firm's largest shareholder. $120 million will help Sharp survive, but it won't be enough -- especially considering the firm's recent losses. Ending March 2012, the ailing company posted a net loss of 376 billion yen, and has forecast a 450 billion yen loss for the financial year ending March 31.

This month, South Korean electronics giant Samsung paid 10.4bn yen ($112m) for a three percent stake in Sharp. Reports have also suggested that Sharp will receive 30 billion yen ($313 million) this month from various banks.

Topic: Tech Industry

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