Struggling electronics giant Sharp is reportedly discussing a capital alliance with Intel, according to a report from Japan.

The two companies are reportedly in talks for Intel to invest more than 30 billion yen in Sharp, hoping to reach an agreement as early as October, the Mainichi newspaper reported today.

"There is no truth to the report," Heihachiro Ochiai, a Sharp spokesman in Osaka, said today. Intel declined to comment.

Sharp boasts a high level of technology in the latest small- and medium-sized LCD panels and smartphones. Besides the financial gains, such a deal would give Sharp a new client for its displays aimed at mobile devices and ultabooks.

Sharp's technology portfolio includes the IGZO displays, which consumes much less power than conventional LCD displays, they are thinner, they have a highly-sensitive touch screen, and boast very high definition.

All of those advantages make it a perfect fit for ultrabooks using Microsoft's Windows 8 operating system.

Sharp's consolidated results for the business year ending in March 2012 showed a record net loss of 376 billion yen.

Last March, the Japanese company had announced that it was discussing a capital and business tie-up with Taiwan's Hon Hai Precision Industry Co. Hon Hai planned to acquire a 9.9 percent stake in Sharp at a price of 550 yen per share for a total of 66.9 billion yen, but negotiations hit a snag after the price of Sharp's shares fell.

Sharp has already announced a reconstruction plan in order to and return to net profit for the full business year in 2013. The company plans to downsize its solar cell business and sell its television assembly plants in Mexico and Nanjing, China, to Hon Hai. It also plans to cut about 5,000 jobs and reduce personnel expenses by some 14 billion yen by cutting remuneration to employees.