Several players in the chip making industry are looking to acquire Sharp, which has warned that it might soon apply for bankruptcy.

The companies are looking to get a low cost entry into the lucrative advanced display technologies market. It is believed that Intel is the front runner in the race to buy the company while there are indications that Qualcomm is working to acquire the Japanese firm.

Qualcomm recently announced an equity investment and an expanded technology agreement centered on Sharp's IGZO technology. The company is focusing on the mobile display advances and is looking to provide optimized chips for entire user experience. The company was not successful in its own MEMS-based display, Mirasol in the market and acquiring Sharp might help it expand its presence in the market.

Qualcomm's Pixtronix subsidiary continues with developments in the touchscreen and user interface areas. The unit has now expanded tis agreement with Sharp to "develop and commercialize high quality color, low power MEMS displays incorporating IGZO." The partnership will help Qualcomm accelerate commercialization of Pixtronix's low power MEMS displays by using IGZO.