Text size:

  • Small
  • Normal
  • Large

Samsung to take a 3% stake in Japan's LCD pioneer Sharp

Samsung is set to invest US$110 million in Sharp, ensuring it a stable supply of TV panels and bolstering the survival chances of the Japanese maker of Apple iPhone and iPad screens.

Samsung is set to invest US$110 million in Sharp, ensuring it a stable supply of TV panels and bolstering the survival chances of the Japanese maker of Apple iPhone and iPad screens.

The investment would give Samsung a 3 per cent stake in the Japanese LCD pioneer, three sources familiar with matter told Reuters, making it a leading foreign shareholder alongside chipmaker Qualcomm Inc, which in December agreed to invest as much as $120m.

"Rather than the amount of investment, it is the partnership with Samsung that Sharp gains that is important. Sharp has an opportunity to use the Samsung platform," said Tetsuro Ii, the chief executive officer of Commons AM, an investment fund based in Tokyo.

A deal would come as Sharp, which received a $4.4 billion bailout from its banks in October, tries to boost LCD plant utilisation, particularly at its Kameyama factory in central Japan.

It has had to slash production of Apple iPad screens at the facility since the start of the year, other sources told Reuters in January, as consumer demand shifts to the iPad mini, for which Sharp is not a supplier.

An agreement would also be a rare cross border deal between the two rival countries and the first time the South Korean TV maker has ever taken a leading stake in a Japanese rival. Japan's big three TV set makers, Sharp, Sony and Panasonic are struggling to overcome losses as Samsung clobbers them in overseas markets.

"We see a possibility that Samsung in return for its investment, may demand more preferential pricing in parts supplies," Deutsche Securities analyst Yasuo Nakane said in a report. A deal would also provide an opportunity for Samsung to partner with or even acquire Sharp's solar panel business, Mr Nakane added.

Sharp already supplies LCD panels for Samsung's 32 inch, 40 inch and 60 inch TVs, said Mr Nakane. Samsung also buys screens from Taiwanese makers.

 

* Reuters

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National