TOKYO (Reuters) – Japanese struggling display panel maker Sharp Corp and U.S. chipmaker Qualcomm Inc have agreed to jointly develop next-generation displays, two sources familiar with matter said on Tuesday.

The two are in talks for Qualcomm to invest as much as 10 billion yen ($121.5 million) in debt-laden Sharp, the sources said.

Sharp declined to comment.

The Nikkei business daily earlier reported that Sharp would receive by the end of this year 5 billion yen from Qualcomm through a private placement of new shares, followed by an additional 5 billion yen at a later date. ($1 = 82.2850 Japanese yen)

(This story has been corrected to fix day of week in first paragraph)

(Reporting by Reiji Murai; Writing by Mayumi Negishi; Editing by Edwina Gibbs)