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.

Tags: Foxconn, Osaka, Panasonic, stake

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