Intel, Qualcomm may invest $378 mn in Sharp: Report

add_main_image Tokyo: US-based Intel Corp and Qualcomm Inc are in talks to jointly i nvest about ¥30 billion in debt-stricken Japanese consumer electronics maker Sharp Corp, two sources familiar with the matter said on Wednesday. Details of the talks were not known, but Sharp, whose displays are used in Apple Inc’s iPads and iPhones, is looking to small displays to spark a revival in its fortunes and sees the new generation of high-end laptops as a fresh market.NextMAds Intel, which has been promoting a new category of thin “Ultrabook” laptops with touch screens, has long been interested in Sharp’s power-saving IGZO displays, as it responds to a shift from PCs to smartphones and tablets. Shares in Sharp jumped 11% on the news, but brokers said the rally was likely to be brief as the potential investment would do little to address the firm’s fundamental problems as it struggles with a TV business in retreat, aggressive competition and a $13.8 billion debt load, according to Thomson Reuters data. “Sharp has talked about cutting debt and inventory, but they haven’t made it clear how they plan to generate cash flow and strengthen their capital base,” said Toshiyuki Kanayama, senior market analyst at Monex Inc. Latest talks Japan’s top LCD maker has been in talks for months with Taiwan’s Hon Hai Precision Industry Co Ltd, which is considering becoming the century-old Japanese firm’s biggest shareholder, but has said it is looking at other alliances as well.sixthMAds A Sharp spokeswoman said no decisions have been made about accepting investments from other companies, while an Intel official declined to comment.