Intel and Qualcomm are in talks to jointly invest about 30 billion yen ($A360 million) in debt-stricken Japanese consumer electronics maker Sharp, according to sources with knowledge of the matter.
Details of the talks were not known, but Sharp, whose displays are used in Apple's iPads and iPhones, is looking to small displays to spark a revival in its fortunes and sees the new generation of high-end laptops as a fresh market.
Intel has long been interested in Sharp's power-saving IGZO displays, as it responds to a shift from PCs to smartphones and tablets.
Sharp may reach an agreement as early as the end of this month with Qualcomm, said one of the sources, adding talks with Intel are less concrete amid the chipmaker's unclear financial picture.
Shares in Sharp jumped 11 percent on the news, but brokers said the rally was likely to be brief as the potential investment would do little to address the firm's fundamental problems as it struggles with a TV business in retreat, aggressive competition and a $US13.8 billion debt load, according to Thomson Reuters data.
"Sharp has talked about cutting debt and inventory, but they haven't made it clear how they plan to generate cash flow and strengthen their capital base," said Toshiyuki Kanayama, senior market analyst at Monex Inc.
A Sharp spokeswoman said no decisions have been made about accepting investments from other companies, while an Intel official declined to comment. Qualcomm officials were unable to immediately comment.
The Osaka-based firm, which has lost three-quarters of its value so far in 2012, nearly doubled its forecast full-year net loss to 450 billion yen earlier ($A5.4 billion) this month after booking a $A1.06 billion restructuring charge in July-September.
In late morning trade, Sharp shares stood at 162 yen, up 6.6 percent, while the benchmark Nikkei 225 was little changed.
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