South Korea’s electronic behemoth Samsung Electronics has announced Wednesday that it decided to invest 10 billion yen (116.7 billion won, or $110 million) in struggling Japan-based Sharp.
Under this capital injection deal, Sharp plans to expand its supply of 32-inch LCD panels for Samsung and form a partnership with the Korean company to supply mid and small-size LCD panels for smart phone and tablet PC production in preferential supply terms.
Sharp expects that the deal will help it to improve its worsening financial structures and increase operation rate of its LCD panel factory. With the latest investment, Samsung will secure a smooth supply of LCD panels without making new investments.
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