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Qualcomm payment to Sharp late

Kyodo

Sharp Corp. said Monday it will not be able to receive the second half of a ¥9.9 billion investment from Qualcomm Inc. by the March 29 deadline because of a delay in their joint development of new display panels.

The struggling electronics maker said that the company “intends to continue its discussions with Qualcomm” and make an announcement when discussions are concluded.

Under the capital tieup agreement last December, Sharp was to receive a about ¥9.9 billion in investment from the U.S. telecommunication product maker in two batches via third-party allotments of new shares. The company received around ¥5 billion in December.

Although the rest was to be invested by the end of this month after certain results in display development were achieved, the two companies are facing difficulty in establishing a technology to mass produce the panels and more time will be needed to assess the possibility of mass production, Sharp said.

In December, when they concluded the alliance, Sharp noted the possibility that the second batch of the investment might be delayed until June 30.