Qualcomm takes 2.64% stake in Sharp; more to come in March.
Qualcomm has taken a 2.64% stake in Sharp by buying 30m Sharp shares for $60m.
The present intention is for Qualcomm to lift its stake to 5.2% via a similar deal in March, though Sharp says this second deal may be delayed until June.
Sharp is still in negotiations with Foxconn over the Chinese company taking a 10% stake in Sharp.
Qualcomm will combine with Sharp on the development of the Japanese company’s IGZO display technology.
Earlier this year Qualcomm ditched its own development of a proprietary display technology called Mirasol.
Sharp has $12.76bn of debt of which $4.25bn is due within 12 months. It has cash of $2.75bn and is expecting a loss of $5.6bn this financial year. It plans to sack 10,000 people and, in November, put its Osaka HQ and its 9% stake in Panasonic up as collateral for a $4.6bn bank loan.