Samsung has invested in the liquid crystal business of Sharp in a deal that could impact Apple’s supply of iPhone and iPad screens from the Japanese company, with its main smartphone rival benefiting.
Samsung will pay JPY10.4 billion ($110.4 million) to secure 3.08 per cent of the voting rights in Sharp and establish a capital alliance between the companies. Sharp issued new shares through a third party allotment to Samsung Electronics Japan.
The aim of the alliance is to increase the corporate value of both companies in relation to liquid crystal display technology and to boost Sharp’s capital.
Sharp already supplies LCD panels to Samsung but the capital alliance will further strengthen the relationship to “continuously provide a long-term, stable and timely supply” of LCD panels for mobile devices, tablets, laptop computers and televisions.