Samsung’s latest strategy? Nabbing tiny stakes in companies it relies heavily on.
Samsung relies heavily on Sharp for the displays in its big-screen televisions and mobile devices, so the deal will strengthen their relationship even further. Sharp also sorely needs the cash, after laying off 10,000 workers and selling three of its plants to Foxconn last year. It could also make Sharp less reliant on Apple, which uses its displays for iPhones and iPads, the Wall Street Journal points out.
The deal is scheduled to be completed on March 28, 2013. About two-thirds of the investment is slated to go towards “introduction of new technology for LCDs with high-definition features,” which likely means the development of higher-resolution LCDs for mobile devices. One third of the investment will go towards “rationalization of manufacturing facilities used in mobile devices,” including displays for tablets and notebooks.
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