Tuesday afternoon the rumors of Sharp being saved by an investment from Qualcomm became true, as the U.S. technology company has made a deal to become a minority shareholder in Sharp.
Back in November, it was believed Qualcomm and Intel would both offer support to Sharp with some much needed equity, however Tuesday's announcement revealed Qualcomm as the only investor.
As part of the deal, Qualcomm has offered to invest up to $120 million (UK£74.5, AUD$114.5) in Sharp, with $60 million due by the end of 2012.
There is currently no timetable for the other half of the investment to be paid, but Qualcomm will not provide more cash unless Sharp can prove profitable by the end of the fiscal year.
IGZO LCD back on track
Qualcomm's investment in Sharp provides the Japanese manufacturer with the capital to continue work on its Indium Gallium Zinc Oxide (IGZO) displays.
Sharp's IGZO LCD screens provide a low-power solution for tablets and smartphones, requiring power only when in use, rather than constantly being active.
The Aquos Pad will be the first device to use an IGZO display, and the 16GB 7-inch tablet is due to arrive in Japan by the end of this year.
Sharp and its partners, such as Apple, have been secretive about whether or not the IGZO displays will be utilized in iPads and iPhones in the future, but technology that improves battery life and screen resolution could help revolutionize the next wave of touchscreen devices.
It's also worth pointing out IGZO LCD technology may not just be limited to smaller screens, and the screens could possibly make their way into television sets down the line.
Qualcomm's investment is a major deal, and could prove to inject life back into the fledgling Sharp as 2013 begins.
Sharp will have to continue to work to resolve its financial issues though, as recovering from such a drastic collapse will take some time and effort.
Source : techradar[dot]com
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