Sharp gets an investment worth $110 million from Samsung-- giving the Korean giant a 3.08% stake in the struggling CE maker and increased access to the Sharp LCD panel supply.
The news represents a rare cross-border technology deal between two rival countries, one a former giant and and the other a successful upstart, and is a first agreement of the sort for Samsung.
The agreement is mutually beneficial for the two companies-- Sharp gets much needed cash and a production boost at the Kameyama 10th generation display plant while Samsung buys more TV-size LCD panels at a preferential price, potential access to IGZO (indium gallium zinc oxide) display technology and a chance to swallow production capacity from a plant making Apple device display panels.
Sharp already has a similar December 2012 deal with Qualcomm, one worth $120m. It is also hoping for further investment from Taiwan's Hon Hai Precision, even if reportedly talks broke down following sharp drops in Sharp share prices.
Meanwhile Reuters suggests Samsung might invest further in Sharp, by either tying up with or acquiring its solar panel business.
Go Sharp Capital Alliance With Samsung
Go Samsung Gets Foot in at Key Apple Supplier Sharp With $110m Investment (Reuters)