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