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Samsung invests $112 million in Sharp to secure LCD supply

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sharp TV japan businessmen
sharp TV japan businessmen

Sharp has just confirmed reports that it is getting a 10.4 billion yen (about $111.6 million) capital infusion from Samsung. While that sum only gives Samsung a three percent stake in Sharp, it would make it the biggest individual shareholder that isn’t a financial institution and the fifth-largest stakeholder overall. The deal gives Samsung access to Sharp's LCD supply (particularly its 32-inch television screens), and Sharp will use the cash to expand and improve its TV and smartphone panel production.

The Samsung deal will serve to vouch for Sharp's viability

Sharp has been in discussions with Taiwan’s Hon Hai Precision to sell a significant stake in its company, but talks stalled following a major dip in Sharp’s share price. Nikkei reports that the deadline for Sharp to seal the Hon Hai deal is due to expire on the 26th of this month, and that the Samsung deal will serve to vouch for Sharp’s viability as a business. In December, Qualcomm invested a similar $120 million in the company.