Shares in Japan's embattled electronics maker Sharp have rocketed on reports the company may get a cash injection of hundreds of millions of dollars from chip giant Intel.
Sharp was up 7.23 per cent at 163 yen in early trade on the Tokyo Stock Exchange after surging 10.5 per cent briefly.
The Asahi daily said Sharp and Intel were close to agreeing a Y30-40 billion ($A485.76 million) injection.
The Yomiuri said Intel, which has joined hands with Sharp to develop digital products equipped with its microprocessors, may purchase 30 billion yen of Sharp bonds that could be converted into shares.
The two firms aim to reach an accord by the end of the month, the Yomiuri said, while adding the sum could be lower.
An investment of Y30 billion could give the US company a potential equity stake of more than 17 per cent, based on Sharp's market capitalisation of 168.8 billion yen at the close on Tuesday.
The reports said Sharp was also looking for investment from other US companies including telecom group Qualcomm.
Jiji Press news agency said Sharp would get a combined Y24 billion from Intel and Qualcomm.
An expected capital injection from Taiwan's Hon Hai Precision, which makes Apple gadgets in China, has stalled but Sharp will continue talks with the Taiwanese partner, the reports said.
Sharp would not confirm the reports but they were "an obvious positive for Sharp," said Toshiyuki Kanayama, market analyst at Monex.
Sharp has warned it will book a $US5.6 billion ($A5.39 billion) net loss for the year to March as it undergoes a painful restructuring to try to staunch the flow from its bleeding television business and the falling price of LCDs amid stiff competition from overseas rivals.
The company's credit rating has been downgraded to "junk" status, making the Y200 billion ($A2.43 billion) it needs to raise next year a potentially expensive and difficult process.