Sharp Corporation and Qualcomm Corporation are about to work out a deal together that will help the struggling Japanese tech firm. Sharp has been looking at numerous ways in which to remain profitable in a highly competitive world market, and sharing its technology seems to be one of them.

Qualcomm s initial investment will be about 121 million dollars. The two will be combining their efforts to further develop the next generation IGZO display, which is a Sharp technology.

With this deal Sharp will allow Qualcomm to study its indium-gallium-zinc oxide (IGZO) technology. As part of the agreement Qualcomm will initially invest $121 million in the partnership and then another estimated $60 million once the project progresses.

Sharp has been struggling, and in 2012 alone the company lost over 75% of its stock value on the Tokyo stock exchange. Sharp is expecting a second consecutive net loss as well, and with a capital ratio somewhere around 10% at the end of September 2012. Sharp is looking for ways to bring up its capital, and Qualcomm’s investment would give the popular mobile chip maker an approximate 5% stake in Sharp.

Sharp’s advancement with their LCD displays may help them become more profitable, and the company is doing fair as of late as it ranks second with about 16% of the global market share for smaller LCD panels used in smartphones and tablets.

Qualcomm is a California basedcompany that manufactures and designs digital wirelesstelecommunicationsproducts, and is also a major semiconductor provider. In a move to expand its reaches, Qualcomm putting effort into further development of its mirasol display technology, which is based on a reflective technology called “Interferometric Modulation” or IMOD. The MEMS-based development uses less power and is highly reflective, allowing it to be seen in direct sunlight.