Qualcomm to delay investment in Sharp

Qualcomm to delay investment in SharpQualcomm Inc has indicated that its second batch of investment in Sharp Corp is likely to be delayed as the two companies have not reached an agreement on the terms of the deal.

The investment was earlier expected in March, but Qualcomm has hinted that it might now be delayed until the terms of the deal have been agreed between the two sides. The delay in receiving the second round of capital from Qualcomm will add pressure on the struggling Japanese electronics maker, which is aiming at strengthening its financial position amid difficult market conditions.

The investment will ensure Sharp’s investors that it is in a stable financial position after it recorded huge losses during the previous two years. Sharp had announced a deal with Qualcomm in December for an equity investment of up to 9.9 billion Yen. The two companies are planning to focus on developing displays using a Sharp liquid-crystal-display technology and Qualcomm's emerging low-power-display technology.

Qualcomm had expanded technology agreement centered on Sharp's IGZO technology. The company is focusing on the mobile display advances and is looking to provide optimized chips for entire user experience. The company was not successful in its own MEMS-based display and acquiring Sharp might help it expand its presence in the market. Qualcomm’s Pixtronix subsidiary also expanded its agreement with Sharp to develop and commercialize high quality color, low power MEMS displays incorporating IGZO.

Sharp spokeswoman Miyuki Nakayama said that the investment has been delayed because the two sides did not reach on agreement on terms of the deal.