Samsung is preparing to buy 3% stake of the Japanese electronics manufacturer Sharp, Sharp had been struggling to raise funds last year after their credit rating status was changed, Samsung agreed to buy the stakes of Sharp for $110 million.
Regarding this deal Wall Street Journal reported:
“For cash-rich Samsung, the move will ensure a stable supply of LCD screens for TV sets from Sharp. The Japanese company is the only LCD manufacturer that currently operates an advanced manufacturing facility capable of turning out TV panels from the industry's largest sheets of glass. This allows Sharp to lower the manufacturing costs of TV screens larger than 60 inches. Samsung may also rely on Sharp to supply panels for tablets.”
Sharp is currently one of the major companies manufacturing displays for Apple iOS devices, so this will impact the relationship between Apple and Sharp in the future.
The shares of Sharp rose 17% on Tokyo Stock Exchange, as soon as the reports of the deal started to surface.