Sharp Announces Capital Alliance with Qualcomm, Inc. and Display

Sharp Announces Capital Alliance with Qualcomm, Inc. and Display Technology
Development Agreement with its Subsidiary Pixtronix, Inc. 
Osaka, Dec 4, 2012 - (JCN Newswire) - Sharp Corporation (hereafter
"Sharp") today announced that the Company has reached an agreement
with Pixtronix Inc. (hereafter Pixtronix), a subsidiary of Qualcomm
Incorporated (hereafter "Qualcomm", NASDAQ: QCOM), concerning the
development of Pixtronix's MEMS(1) displays. In addition, Sharp signed the
capital alliance agreement and will issue new shares by a third party allotment
(hereafter "This Third Party Allotment") with Qualcomm Incorporated,
a world leader in 3G, 4G and next-generation wireless technologies, as the
allottee. 
MEMS display to be developed jointly by the two companies is a display using
ultrafine process technology and existing display manufacturing infrastructure
with features including high color reproducibility and low-power consumption.
The development for commercialization of MEMS display will be achieved by
integrating Sharp's core display technology, IGZO(2) and MEMS display
technology of Pixtronix. 
In addition, Sharp is planning to accept up to 9.9 billion yen(3) from
Qualcomm in equity investment to pursue this joint development. This capital
will be used for the development of MEMS display and necessary capital
investments related thereto targeting for the achievement of the technology for
commercialization. 
With this agreement, the two companies will consider the possibility of
further collaboration of chipsets by Qualcomm Technologies, Inc., a
wholly-owned subsidiary of Qualcomm Incorporated and IGZO-based display
technology for lower power consumption and higher performance of mobile
terminals. 
With this agreement, Sharp will accelerate its strategy for growth in small-to medium- sized LCD business with IGZO-based display technology as its core,
and expand its revenue and corporate value. 
(1) MEMS: Micro Electro Mechanical Systems
(2) IGZO: IGZO (InGaZnO) is an oxide comprising indium (In), gallium (Ga), and
zinc (Zn). A thin-film transistor using this material has been developed by
Sharp in collaboration with Semiconductor Energy Laboratory Co., Ltd. (a
company based in Kanagawa, Japan, and led by President Shunpei Yamazaki)
(3) Equivalent to 120 million U.S. dollars calculated by exchange rate of
December 3, 2012 
Summary of the joint development and capital alliance 
1. Development for the Commercialization of Next Generation Display 
- The next generation display will be jointly developed integrating
Sharp's IGZO-based display technology and Pixtronix's MEMS display
technology. The joint development will establish facilities in the LCD panel
plant in Sharp Yonago Corporation (location: Yonago city, Tottori prefecture,
Japan) for development of the technology for commercialization. 
- The development for next generation displays and necessary investment will
begin immediately. At the point when the development of the technology for
commercialization is confirmed to be feasible, we will move to the next stage
by implementation of equipment targeting to achieve mass production
technology. 
2. This Third Party Allotment 
Sharp will issue new shares by third party allotment with Qualcomm as the
allottee by each stage of joint development of the technology for
commercialization. The second stage is contingent upon achieving certain
milestones. 
About Sharp 
Sharp Corporation (TSE: 6753) is a worldwide developer of innovative products
and core technologies that play a key role in shaping the future of
electronics.  As a leader in liquid crystal displays (LCDs) and digital
technologies, Sharp offers one of the broadest and most advanced lines of
consumer electronics, information products and electronic components, while
also creating new network businesses. For more information, please visit
www.sharp.co.jp . 
Contact: 
Corporate Public Relations Division
Sharp Corporation
Phone: +81-6-6625-3006 (Osaka)
Phone: +81-3-3260-1870 (Tokyo) 
Copyright 2012 JCN Newswire. All rights reserved. www.japancorp.net 
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