(Reuters) - Sharp Corp and Qualcomm Inc reached a deal to jointly develop an energy-efficient LCD panel for smartphones using the Japanese company's display technology, the Nikkei reported.
Sharp will provide its indium-gallium-zinc oxide technology, which greatly reduces a panel's power use. Full details are expected to be announced as early as Tuesday, the daily said.
Sharp will receive 5 billion yen ($61 million) from the U.S. chipmaker by the end of this year through a private placement of new shares. Sharp will receive an additional 5 billion yen or so once sufficient progress has been made, the newspaper reported.
A 10 billion yen investment would give Qualcomm a roughly 5 percent stake in Sharp based on Sharp's Monday closing price, the daily noted.
Qualcomm and Sharp representatives were not immediately available for comment.
Sharp, which pioneered LCD technology, has lost three-quarters of its market value this year following massive losses and falling market share.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)
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