Qualcomm Investing in Sharp to Push IGZO Display Technology Forward

[MacRumors]

The Wall Street Journal reports that Qualcomm has agreed to invest up to $120 million in Sharp as part of an effort to prop up the ailing manufacturer of displays for a wide range of electronic devices. The deal will also see the two companies working together to push Sharp's new indium gallium zinc oxide (IGZO) technology that has been rumored for use in a number of Apple products.

Sharp and Qualcomm will work together to develop screens based on the Japanese company's new IGZO display technology and Qualcomm's microelectromechanical systems, or MEMS, displays. The former, named for a new material used--indium gallium zinc oxide--hold several advantages over silicon-based screens, Sharp says. These latter offer promise as a lower-power alternative to today's screens.

According to Sharp, the new displays making use of the two technologies allow mobile devices to go longer between charges, provide more pixels per inch for sharper resolution and enable touch screens to be more accurate and sensitive.

The report notes that Sharp is betting on IGZO to save the company, which is in dire financial straits. Sharp is viewed as a critical partner for Apple as the iPhone maker seeks to lessen its reliance on Samsung, and there has been speculation that Apple recently structured component prepayment and equipment deals worth as much as $2 billion to help shore up Sharp's financial situation.

Article Link: Qualcomm Investing in Sharp to Push IGZO Display Technology Forward

[Limboistik]

Hope they don't come back with a bigger bill and mess up Apple's plans.

[SDAVE]

Originally Posted by Limboistik

Hope they don't come back with a bigger bill and mess up Apple's plans.

What plan? World domination?

Your kind of replies always scare the bejesus out of me.

[apfeljonas]

I'm glad Sharp is getting these investments and they are also a display supplier to the iPhone, their screens have always been top-notch quality IMO. The TV I own from them (around 5 years old now, 720p HD) has awesome quality for the specs it has.

[Goldmansachs]

the new displays making use of the two technologies allow mobile devices to go longer between charges, provide more pixels per inch for sharper resolution and enable touch screens to be more accurate and sensitive.

Thank you future!

[Tankmaze]

glad to know those japanese company making a come back in screen tech... it could give good competition for the koreans companies

[everything-i]

Originally Posted by apfeljonas

I'm glad Sharp is getting these investments and they are also a display supplier to the iPhone, their screens have always been top-notch quality IMO. The TV I own from them (around 5 years old now, 720p HD) has awesome quality for the specs it has.

Sharp does make some very high quality displays but didn't scale up at the same time as Samsung and LG so ended up with much lower production volumes and therefore a far more expensive product. The current investment from the likes of Apple and Qualcomm is enabling them to ramp production to cost effective levels in the current market where they can start to compete again.

[dugbug]

Wonder when Apple will just out-right aquire some manufacturing capability for preventing sharing of components. I would have thought IGZO represented a marketing advantage to them and kept expecting to see some type of exclusivity arrangement. They probably think display technology changes too frequently to saddle themselves down to one basket.

[JAT]

If Sharp survives, are we going to see ridiculous theories in 15 years about how Qualcomm saved them with a comparatively tiny cash infusion?

[JAT]

Originally Posted by everything-i

Sharp does make some very high quality displays but didn't scale up at the same time as Samsung and LG so ended up with much lower production volumes and therefore a far more expensive product. The current investment from the likes of Apple and Qualcomm is enabling them to ramp production to cost effective levels in the current market where they can start to compete again.

They also had quality issues with (IIRC) iPad-intended displays a year ago, and Apple stayed with LG/Samsung. Perhaps money can fix that kind of problem, too.

[everything-i]

Originally Posted by JAT

They also had quality issues with (IIRC) iPad-intended displays a year ago, and Apple stayed with LG/Samsung. Perhaps money can fix that kind of problem, too.

Yes, production has been Sharps achilles heal for a long time, good product but low yields. This is what a good deal of the Apple money was spent on I guess as they finally got the yields necessary to start supplying Apple towards the end autumn this year.

[Dwalls90]

Makes sense. Qualcomm needs innovative and quality phones on the market to drive sales of their chipsets. Great idea.

[camnchar]

Hopefully this + Apple's investments will ensure Sharp's continued existence, so we don't have to hear about its "dire financial straits" every time we read an article about it.

Reminds me of Apple in the 90s.

[Radio]

i have a dollar here i can throw in.

every cent counts

RADIO

[apfeljonas]

Originally Posted by camnchar

Hopefully this + Apple's investments will ensure Sharp's continued existence, so we don't have to hear about its "dire financial straits" every time we read an article about it.

Reminds me of Apple in the 90s.

Apple investments? This is Qualcomm investing...

[Kaibelf]

Originally Posted by apfeljonas

Apple investments? This is Qualcomm investing...

As per the article: "there has been speculation that Apple recently structured component prepayment and equipment deals worth as much as $2 billion to help shore up Sharp's financial situation."

[deconstruct60]

Originally Posted by Kaibelf

As per the article: "there has been speculation that Apple recently structured component prepayment and equipment deals worth as much as $2 billion to help shore up Sharp's financial situation."

Pre-paying means that Apple is just paying for products. Eventually Sharp has to deliver those products. That will cost Sharp money and Sharp has to allocate almost all of that money to that specific product delivery . I'm extremely sure that in paying a very large amount in advance that Apple is getting a relatively high discount on the products. If Apple hammered them for the maximum feasilble discount then it really not an investment at all. That means Sharp won't make much profit at all off the screens Apple takes in trade. Without profits, Sharp isn't viable over the long term.

An investment of cash can be allocated to whatever is the major problem ( debt/bond repayment , downsizing buyouts , new equipment , etc. ). There is a deep, fundamental difference between those two.


Apple's money helps Sharp keeps the lights on and factories running for now, but it is not an investment. Hopefully, Sharp can round up some other customers that will pay a bit more for screens so that the company survives long term.


Apple's pre-payment does help Sharp. It paves the way for Sharp to make a more flexible deal like this one with Qualcomm. (although I suspect Qualcomm is going to walk away with some highly discounted royalty agreements out of this. )

When you buy an iTunes gift card you are not "Investing" in Apple. Apple pre-paying for product is just a huge "gift card" for another part of Apple.

[angrydog]

Originally Posted by apfeljonas

Apple investments? This is Qualcomm investing...

He is probably talking about these articles;

http://www.macrumors.com/2011/01/20/...-lcd-displays/

http://9to5mac.com/2012/11/05/apple-...failing-sharp/

[bloggerblog]

In the 90's Sharp has pulled a "Samsung" and copied the Newton, so I don't think Apple would be better off with them.

The copying thing seems to be so rampant in the far east, that to them it's good business to just copy a successful product and stick their logo on it.

[gto55]

what about apple ?
Sharp could a good alternative to LG's displays to avoid some problems like the white stains on some iMac models

[Skoopman]

Originally Posted by bloggerblog

In the 90's Sharp has pulled a "Samsung" and copied the Newton, so I don't think Apple would be better off with them.

The copying thing seems to be so rampant in the far east, that to them it's good business to just copy a successful product and stick their logo on it.

Because American companies never ever steal or copy anything. I hope IGZO is really the future and SHARP can be saved. They have great displays and I would love to see one of them in the MacBooks.

[Casiotone]

Originally Posted by bloggerblog

In the 90's Sharp has pulled a "Samsung" and copied the Newton, so I don't think Apple would be better off with them.

The copying thing seems to be so rampant in the far east, that to them it's good business to just copy a successful product and stick their logo on it.

Ehm, that's simply not true.

Sharp actually built parts for Apple's Newton message pad, and the ones they sold were under an official licence from Apple.

[nexusrule]

Originally Posted by bloggerblog

In the 90's Sharp has pulled a "Samsung" and copied the Newton, so I don't think Apple would be better off with them.

The copying thing seems to be so rampant in the far east, that to them it's good business to just copy a successful product and stick their logo on it.

Japan is not far east in the way you mean it.

[Jimrod]

If they're responsible for the pissy yellow display on my iPhone 5 (and many other people's) then I hope they do go under... I expect LG are the ones responsible though as my Plasma from them had a similar tint - the difference being I could calibrate that and I can't on my phone.

And no, it's not just "warmer" or the glue setting, it's 2 months old been used plenty and measures 81% Red, 106% Green, 92% Blue. So much for the quality and colour depth being a big selling point, the colours can be as deep as the ocean but if they're wrong it's pretty redundant. :\

[everything-i]

Originally Posted by Jimrod

If they're responsible for the pissy yellow display on my iPhone 5 (and many other people's) then I hope they do go under... I expect LG are the ones responsible though as my Plasma from them had a similar tint - the difference being I could calibrate that and I can't on my phone.

And no, it's not just "warmer" or the glue setting, it's 2 months old been used plenty and measures 81% Red, 106% Green, 92% Blue. So much for the quality and colour depth being a big selling point, the colours can be as deep as the ocean but if they're wrong it's pretty redundant. :\

Why not just take it back and get a replacement