TOKYO – Japan’s cash-strapped Sharp Corp. is reportedly in detailed talks with both Intel Corp. and Qualcomm Inc. for an investment of up to $500 million, the Kyodo News agency reported Tuesday (Nov. 14).
Reuters also reported Wednesday that the joint investment in Sharp would total about $378 million. The news agency cited two unnamed sources allegedly familiar with the talks.
None of the companies has confirmed the talks.
The investment by the world’s largest CPU vendor and the leading mobile chip supplier is badly needed by Sharp, which is weighted down by an expected annual loss estimated at $5.6 billion. Sharp warned earlier this month that it may not be able to survive as an independent company. After announcing a massive quarterly loss on Nov. 1, the company acknowledged "serious negative operating cash flow."
Intel is said to be interested in Sharp’s power-saving IGZO displays for its Ultrabook line.
Reuters reported that Sharp may reach an agreement as early as the end of November with Qualcomm, while "talks with Intel are less concrete amid the chip maker's unclear financial picture."