Japanese tech firm Sharp has abruptly ended its talks with Korean electronics company Samsung Electronics, which is trying to make inroads into the copy machine industry, according to Japanese media Wednesday.
The exact reason why the once-leading Japanese electronics behemoth called off the collaboration is not clearly known yet but, cross-license patents that Sharp shares with other Japanese copier makers including Canon are said to have contributed to the breakup.
Samsung declined to comment on the matter as of Thursday afternoon.
The Japanese manufacturers reportedly opposed the joint venture because they were concerned key technology could fall into the hands of Samsung.
Samsung, which in March invested 10.4 billion yen ($106 million), around 3 percent of the total shares, is said to be the third-largest shareholder of Sharp.
“Industrial protectionism could have worked in the latest development as a government often tries to protect an important technology from being leaked to foreign firms or governments,” a market watcher said.
Sharp, however, will likely remain in talks with the Korean firm on supplying domestic appliances such as refrigerators and washing machines, according to reports.
