Report: Intel in talks to invest up to $500 million in Sharp
Japan's Kyodo News agency says the two companies are in final negotiations, and Sharp is also in talks with Qualcomm
IDG News Service - Intel is in final negotiations to invest up to $500 million in struggling Sharp of Japan, the Kyodo News agency reported Tuesday.
Japan's largest news agency said the companies were discussing an investment of between 30 billion and 40 billion yen. It reported Sharp is also negotiating with Qualcomm, the U.S. maker of chips and components for mobile devices.
Sharp, in the midst of a restructuring and facing $5.6 billion in losses this fiscal year, warned earlier this month that it may not survive if it can't turn around its business or secure outside investment. While the company has massive cash flow problems and has been assigned junk status by rating agencies, it still possesses cutting-edge LCD technologies and some of the largest display factories in the world.
The Osaka-based company is in ongoing negotiations with Foxconn parent Hon Hai, after an investment deal agreed to earlier this year was shelved when Sharp's stock price plunged. While Sharp's negotiating position weakens along with its financial situation and sagging stock price, adding more bidders to the mix could motivate potential investors.
Sharp is suffering from investing too much on large-screen LCD panels for TVs, and is rushing to switch over to making screens for the booming tablet and smartphone market. The company also makes its own phones and tablets, which it sells mainly in Japan, and a wide range of consumer electronics and appliances.
The company has begun mass producing small screens for mobile devices using its IGZO technology, which uses far less power than existing technologies. Named after the indium gallium zinc oxide semiconductor on which they are based, the screens will be used in several upcoming Sharp devices, and the company has said it expects them to become a core product.
Officials at Sharp were not available for comment late Tuesday in Japan. The latest report from Kyodo, however, comes two months after Sharp denied earlier articles that it was in talks with Intel, saying flatly "there is no truth to the reports."
"It is pure speculation, we don't comment on rumors," said Chuck Mulloy, an Intel spokesman.
Japanese media have also linked Sharp to deep-pocketed Apple, for which it is a major supplier of displays.
As TurboTax deals with the last minute crush of filers, vice president Bob Meighan shares the four most commonly asked questions customers are asking this year.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- The Big Data Opportunity for HR and Finance
- If CEOs, CFOs, CIOs, and CHROs want to drive their businesses forward, they will need to quickly recognize the enormous value of big...
- Manufacturing Outlook: Improving time to market, operational effectiveness and innovation in a highly competitive environment
- An enterprise project portfolio management solution can help manufacturers position themselves in the new competitive landscape.
- Time-to-Market: The Need for Speed in the Automotive Industry
- Bringing new vehicles to market quickly has never been more challenging. To bring new models to market on-time and on budget, automakers need...
- Application Rationalization Scorecard: Analysis to Action
- This paper details a proven method, used most recently to evaluate a financial services application portfolio. At the method's core is the scorecard....
- Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
- This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
All Financial IT White Papers
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Mobile Security: Containerizing Enterprise Data In this on-demand webinar, Fixmo's Lee Cocking, VP of corporate strategy, explains why Apple-ization trends like mobility and "bring-your-own-device" (BYOD) are driving the...
- Endpoint Data Management: Protecting the Perimeter of the Internet of Things Not surprisingly, "Internet of Things" (IoT) and Big Data present new challenges AND opportunities for enterprise IT. Teams need to harness, secure and...
- How to Protect Enterprise Data Yet Enable Secure Access for End Users Learn how BYOD, Big Data and the use of rogue applications and devices is putting corporate data at risk, best practices from IT...
- All Financial IT Webcasts