Samsung has agreed to invest $111m in the troubled Japanese firm Sharp, which would give the South Korean firm a 3% stake in the LCD maker.
The move marks a first capital alliance between key consumer electronics makers in both countries and Samsung one of the largest shareholders in Sharp.
The deal will help Sharp boost LCD plant utilisation at its Kameyama facility in central Japan.
As part of the agreement, Sharp will also supply LCD panels for Samsung’s mobile devices, notebook computers and smartphones.
In 2012, Sharp revealed plans to sell a 9.9% stake to Hon Hai Precision Industry, however the deal stalled after the company’s share price declined.
In December, Qualcomm invested in Sharp to assist in the development of new LCD screens for mobile devices.
Sharp is anticipating a net loss of about JPY450bn ($4.8bn) by the end of the financial year to March 2013 over heavy restructuring charges and declined sales.
