Japan's Sharp in talks with Intel on capital tie-up: report

Reuters News
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Posted: Sep 20, 2012 7:07 PM

TOKYO (Reuters) - Japan's Sharp Corp is in talks with U.S. chipmaker Intel Corp on a capital alliance, a newspaper said, offering a lifeline to the troubled TV maker as discussions with Taiwan's Hon Hai Precision Industry Co Ltd stall.

The companies are in talks for Intel to invest more than 30 billion yen ($383 million) in Sharp, possibly making it Sharp's top shareholder, Japan's Mainichi newspaper reported on Friday, without citing sources. They could reach a deal as early as next month, although Sharp will also continue its capital tie-up discussions with Hon Hai, the paper added.

Intel is attracted by Sharp's technology for small and midsize liquid crystal display (LCD) panels, the report said.

($1 = 78.2450 Japanese yen)

(Reporting by Chris Gallagher; Editing by Chang-Ran Kim)