Samsung Electronics buys 3% share in Apple-supplier Sharp for $112 million

“Sharp has confirmed that it has agreed to a much-speculated deal with Samsung that will see the mobile firm invest 10.4 billion yen (around $112 million) to buy a 3.08 percent stake in the company and gain greater access to its display technology,” Jon Russell reports for TNW.

“‘The purpose of this [deal] is to build up mutual trust relationship toward increase in the corporate value of Sharp and Samsung Electronics in the field of liquid crystal display business, and at the same time to enhance Sharp’s capital adequacy,’ a statement announcing the deal reads,” Russell reports. “The deal is a significant one since it indicates a shift in power towards the smartphone space. As the New York Time’s Digits blog noted, Samsung could help Sharp reduce its dependency on Apple and increase the efficiency of its panel-making efforts.”

Russell reports, “Sharp has seen its financial health decline severely over the past 18 months or so… Last last year it was buoyed when it announced a $120 million investment deal from chip firm Qualcomm, and this is another validation of its business. Another possible investor that is still to commit is Hon Hai, the parent company of Apple partner Foxconn. The two sides have been negotiating a deal that would see the Taiwanese manufacturer take a 10 percent share but, with the deadline to close the investment set for the end of March, Sharp is running out of time, and will hope that this helps bring the Hon Hai deal over the line.”

Read more in the full article here.

Related articles:
Samsung Electronics may buy stake in Apple-supplier Sharp – March 5, 2013
Analyst: Apple a ‘prime candidate’ to adopt Sharp’s IGZO display technology in future devices – January 8, 2013
Hon Hai’s Terry Gou says investment talks in Sharp still on – December 5, 2012
Qualcomm to invest up to $120 million in Sharp; help with development of IGZO display technology – December 4, 2012
Sharp boosts IGZO display output; shares soar – October 22, 2012
Sharp tips highly efficient ‘iPad min’ IGZO screen tech – October 17, 2012
Is Sharp exhibiting high-res iPad mini IGZO displays? – October 2, 2012
Sharp’s IGZO display production issues forced Apple settle on Plan B for new iPad, says expert – May 7, 2012
Analyst: Retina display production issues persist for Apple iPad – April 23, 2012
Sharp announces production of world’s first IGZO LCD Panels – April 13, 2012
After using Apple’s new iPad with Retina display, old iPad screens become absolutely unacceptable – March 30, 2012
Apple ‘iTV’ beckons as jackpot in Hon Hai’s Sharp gamble – March 28, 2012
Foxconn-Sharp partnership likely targeting Apple orders – March 28, 2012
Taiwan Apple supplier Hon Hai becomes Sharp’s largest shareholder with 10% stake – March 28, 2012
Apple to unveil smaller 7.85-inch iPad this year, says anonymous Samsung official – March 13, 2012
Wow, Sharp sure is ramping up IGZO display production for some reason – March 2, 2012
Apple iTV unlikely to launch in 2012 due to IGZO display panel manufacturing concerns, sources say – February 3, 2012


  1. $137 billion in the bank and that clueless guy at the top won’t deploy a single red cent to secure his supply lines.

    You can’t win a war by sitting on your ass all day and being entirely reliant on your suppliers. What if Samsung turned off the spigot by refusing to supply screens to Apple, who will that ‘supply chain genius’ go to next? His mom’s backyard?

    You know what stopped Gen. George S. Patton’s Third Army’s advance into Germany during WWII? Gas for his tanks. They couldn’t supply the gas fast enough for the tanks to push through to Germany to prevent the Wehrmacht from regrouping behind the Westwall (Siegfried Line). And what happened after that? Disaster at Arnhem (Operation Market Garden) and the Battle of the Bulge.

    If the supply situation goes tits up, Apple might as well throw in the towel.

      1. I don’t always agree with BLN, but I have to agree with him on this. Samsung by making an investment in Sharp can influence them. They also are going to get access to technology they might otherwise not have. Then they can do what they always do, steal the technology. They can also keep tabs on what Apple is doing.

      1. No I agree with B.L.N on this.

        Apple should have just paid the 112 million (peanuts).
        apple paid Proview 60 million just to use the name ‘iPad’.
        Both samsung and Apple are multi billion dollar earning companies.

        with a paltry outlay of 112 m Samsung can keep tabs on apple: what size screens and how many they order for example can indicate the type of device the are building and what scope. That gives the copycats a freaking good heads up.
        Apple needs to secure their product lines.

        Cook seems to be penny pinching foolish. Look at Browlett, from what he did with apple retail it seems like his chief mission was to cut costs (by firing staff pre product launch), and Cook cut the lobbying budget so that Google is now spending 9 times apple when apple is facing a big DOJ lawsuit in ebooks. Cook has also a minimal ad budget (go look at charts) for phones, pads AND ZERO (mac pc guy type) ads vs Windows 8 Vista ! nuts.

    1. Give it a rest…. Just because Apple hasn’t announced it has purchased shares or supplies doesn’t mean they haven’t. we just don’t know.

      Besides, 3% of company won’t allow Samsung to invade the BoD of Sharp and dictate who they sell to and what products they produce.

    1. Ha..Ha..Ha..Grasshopper by law westerners (foreigners) cannot buy controlling interest in Chinese, Japanese, or korean companies the same applies to land ownership within those countries too, Americans are too stupid and greedy not to have the same laws in America in return, Tit for tat.

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