US based Intel and Qualcomm considering joint investment of about JPY30bn ($369m) in the struggling Japanese electronics firm Sharp.
Sharp is expected to sign an agreement by the end of November with Qualcomm, according a source cited by Reuters.
The firm has also received a loan guarantee of JPY$360bn from two Japanese banks including Bank of Tokyo-Mitsubishi UFJ and Mizuho Corporate Bank, in September that would allow it to sustain through March 2014.
Sharp's most valuable assets include low-temperature polysilicon (LTPS) and IGZO display technologies that enable lean smartphone and tablet designs with high resolution screens.
During early November, the Osaka-based firm had doubled its net loss forecast to JPY450bn ($5.7bn) following a $1.1bn restructuring charge in July-September period.
The firm is also planning to shift towards small displays to restore its position and observes the new generation of top-end laptops as a fresh market.
Intel is supporting ultrabooks as counter to tablet computers from Apple and during early 2012, it inked deals with several panel makers to assure adequate supplies for a wave of ultrabooks with touch screens powered by Microsoft's Windows 8.