US-based chipmaker Qualcomm has decided to invest Rs 6.35 billion in Japanese electronics, Sharp Corporation. As a result of the equity investment, Qualcomm will become a minority shareholder in the cash-strapped company.
The major focus of the investment will be to expand an agreement between Sharp and Qualcomm’s subsidiary Pixtronix, to develop and commercialise low-power MEMS displays incorporating IGZO (indium gallium zinc oxide) technology for smartphones and tablets. However, the IGZO displays could be manufactured using Sharp LCD production lines, the company said.
Qualcomm had acquired Pixtronix Inc. earlier this year. The Pixtronix display – called PerfectLight, is based on a MEMS-based digital micro shutter that modulates light from an RGB LED backlight. Sharp said investment from Qualcomm will be used to accelerate commercialisation of Pixtronix’s low power MEMS displays utilising Sharp’s IGZO technology. “This capital will be used for the development of MEMS display and necessary capital investments related thereto targeting for the achievement of the technology for commercialisation,” the Japanese company said in its statement.
The equity investment will take place in stages and the consummation of the transaction is subject to certain contingencies, said Qualcomm. “With this agreement, Sharp will accelerate its strategy for growth in small- to medium- sized LCD business with IGZO-based display technology as its core, and expand its revenue and corporate value,” Sharp added.
